Project 101101803 supported by European Commission in EUAF Call.
Principal Investigator: Prof. Dr Hab. Celina Nowak
Carried out in years: 2023-2025
Corporations contribute to and profit from crime. From the point of view of society, it only seems fair to hold them liable for crimes committed to their benefit by an individual linked to a legal entity. However, the liability of corporations for crime is a complex legal question. As a legal entity is a legal fiction, its acts are performed through human beings. The question of how the conduct of human beings can be attributed to the legal entity (by a formal relationship or by a material criterion) is a difficult one. In consequence, EU Member States show very different approaches to the issue of corporate liability. The liability of legal persons for punishable acts is not recognised as criminal in all countries or, where recognised, might not be prosecuted in practice. The need for a more coherent approach in the area of freedom, security and justice (AFSJ) within the European Union is thus crucial to allow for more effective prosecution and a better European response to crime. This would contribute to a more secure environment in the EU for citizens, companies and professionals. In particular, a harmonised approach to the issue of corporate liability appears necessary to improve the protection of the EU’s financial interests in accordance with art 325 of the TFEU and in light of the objectives set out in the so-called PIF Directive. Based on a comparative research of 8 national legal systems (Czech Republic, France, Germany, Italy, Lithuania, Netherlands, Poland, Sweden) and the EU legal framework, the Project Team aims at drafting a set of model rules on criminal liability of corporations. Background materials (including comparative studies) will be published. The project emerges out of the European Law Institute (ELI) High Level Expert Group meeting on Corporate Criminal Liability, which took place on 16 December 2020. It is envisaged that it will conducted as an ELI project.
European Union Member States show very different approaches to the issue of corporate liability at present. The liability of legal persons for punishable acts is not recognised as criminal in all countries or, where recognised, might not be prosecuted in practice. In some jurisdictions corporate liability is subsidiary or alternative to individuals’ liability, while in other countries entities are prosecuted together with their employees.
ELI and ILS PAS project therefore aims at providing guidance to national legislators and/or the EU by proposing a framework for harmonising rules of responsibility and sanctions imposed on corporations for crimes. A (more) harmonised approach to corporate liability for crimes throughout the EU would allow for more effective prosecution of actions and a better European response to crime. This would contribute to a more secure environment in the EU for citizens, companies and professionals. Moreover, a harmonised approach to the issue of corporate liability appears necessary to improve the protection of the EU’s financial interests.
The Project Team will develop a set of Model Rules on corporate criminal liability and sanctions applied to corporations for crimes committed to their benefit by individuals. The Model Rules will be accompanied by background materials.