Video:

 

Onerous duties on company directors

Author: David Alexander

Categories: Business risk, Consequences of Failure, Fraud & Corruption, Governance
Tags: bribery
David Alexander: "Company Directors can be held personally liable if bribes have been paid in their company.  And that could happen in a number of ways.  Firstly, obviously if they knew about it or they were involved in the payment of the bribe then they would be caught under the act as a direct person, as someone who is, you know, paid, offered or promised a bribe to another individual.  However, they could also be caught if they have ignored the warning signs.  And if they’ve ignored the risks in the business and not put any procedures in place, and that’s commonly called the consent and connivance clause, and what that’s basically saying is you buried your head in the sand.  You didn’t look at the risks.  You didn’t consider whether there was the potential for the business to be involved in bribery and corruption.  And as a Director, if that is established then you are as guilty as if you paid the bribe."
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