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The purpose of this enactment is to provide that, where a member of
the staff of a corporation commits an offence by an act or omission on
behalf of the corporation, the corporation, its directors and officers may,
in certain circumstances also be guilty of the offence. This arises if the
corporation management knew or should have known of the act or
omission or condoned or was wilfully blind to it. It is not necessary for
the act or omission to be committed by the same person who authorized
it or tolerated it.
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Where it is shown that the corporation's staff committed the act or
omission, the burden is on the corporation to show it was unauthorized
and not tolerated by the corporation.
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It also establishes the criminal liability of directors and officers of a
corporation that commits such acts or omissions if they knew or should
have known of the act or omission.
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A further offence is created for a corporation that fails to provide safe
working conditions for its employees, again including criminal liability
for directors and officers who knew or should have known of the unsafe
conditions and did not report them to the appropriate authorities.
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