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Corporate manslaughter fines could force firms out

13 December 2007
Issue: 7300 / Categories: Legal News , Health & safety , Professional negligence
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News

Plans to fine first-time offenders up to 10% of their annual turnover for corporate manslaughter offences could force companies to leave the UK and move their headquarters elsewhere, if enacted, lawyers say.
The Sentencing Advisory Panel has drawn up proposals—currently out for consultation—which would see fines of 2.5%–10% of average annual turnover imposed for an offence of corporate manslaughter. When sentencing for an offence under the Health and Safety at Work etc Act 1974 involving death, meanwhile, the fine range would be 1%–7.5% of average annual turnover.

Gerard Forlin, barrister at 2-3 Gray’s Inn Square, says: “This is of fundamental importance to organisations operating in the UK and some may reflect on continuing to have their major headquarters here.”
He says the proposed fines—which would be in line for those imposed for competition offences—cannot rely on a deterrent effect since “some people working in very dangerous environments feel they cannot do much more”.
Forlin believes this could be the final straw which, on top of high taxes, terrorist threats, high workforce costs and more, forces companies to move their UK bases.

However, Jeff Zindani, managing director of Forum Law, argues that the fine range is unlikely to have much of a deterrent effect on companies but “demonstrates yet again the weakness of this legislation”.

MOVERS & SHAKERS

Kingsley Napley—Claire Green

Kingsley Napley—Claire Green

Firm announces appointment of chief legal officer

Weightmans—Emma Eccles & Mark Woodall

Weightmans—Emma Eccles & Mark Woodall

Firm bolsters Manchester insurance practice with double partner appointment

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

Partner joins family law team inLondon

NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
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