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Is it possible to prosecute a legal entity?

Until 2014, this was impossible until the legislator amended the Criminal Code. 

The point is that the manager can perform actions prohibited by law as a representative of the company and in favor of the company. According to the logic of the legislator, the head should bear increased responsibility, given the possible negative consequences for the company itself. At the same time, such a rule creates an incentive to introduce effective anti-corruption policies within the organization.

Case law example: the director of the company gave the tax employee $ 600. to avoid negative consequences based on the results of the inspection of the enterprise. Since the director acted in the interests of the company, the negative consequences will come not only for him but also for the company itself.

What are the penalties for legal entities provided by the Criminal Code?
confiscation of property

In the case described in the example, the director paid a fine of UAH 8,500 and the company paid UAH 34,000. Compared to liquidation, it's not so scary.

What are the terms of liability?
1. Committing a criminal offense specified by law (money laundering, bribery of persons providing public services; bribery of a civil servant, other crimes under Article 96-3 of the Criminal Code).

2. At the time of the offense, the person was an authorized person of the legal entity.

3. In committing a crime, a person acted on behalf of a legal entity and not on his own behalf.

4. The person acted not exclusively in personal interests, but in the interests of the legal entity

And although previously a legal entity could not be prosecuted, courts are increasingly applying such measures. And even without realizing it, management can put business at serious risk.

If you want to prepare for the inspection, or you need to appeal the fine of the supervisory authority - leave your number and we will call you.


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