A welcome debate

0
1148
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

Dear Madam,

Thank you for your Cover story, Are your hands clean?, in the July/August issue of India Business Law Journal, which raises very significant issues and provokes thought.

The critical question is how large corporations with cross-border reach can be held accountable should something go wrong in their operations. The typical method is to proceed for damages. One problem which can arise is where the legal entity concerned is a subsidiary which does not have sufficient means to compensate for the wrongdoing. In such situations it is important to establish how to reach the parent company (which normally has deep pockets). There are no clear legal principles to lift the corporate veil in such situations. Therefore, this is one area of law which needs advancement.

Next comes the question of criminal liability. A company can only be fined, but not imprisoned. Fines under criminal law are nominal and often outdated. Indian statutes do typically provide that where (under the act concerned) an offence has been committed by a company, every person who was directly in charge of and was responsible to the company for the conduct of its business (in addition to the company) shall be deemed to be guilty of the offence.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link