New Clause 79 - Identification doctrine

Economic Crime and Corporate Transparency Bill – in a Public Bill Committee at 11:00 am on 29th November 2022.

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“(1) A body corporate commits an offence listed in Schedule 8 where the offence is committed with the consent, connivance or neglect of a senior manager or senior managers.

(2) An individual is a ‘senior manager’ of an entity if the individual—

(a) plays a significant role in—

(i) the making of decisions about how the entity’s relevant activities are to be managed or organised, or

(ii) the managing or organising of the entity’s relevant activities, or

(b) is the Chief Executive or Chief Financial Officer of the body corporate.

(3) A body corporate also commits an offence if, acting within the scope of their authority—

(a) one or more senior managers engage in conduct, whether by act or omission, such that, if it had been the conduct of only one representative, that representative would have been a party to the offence; and

(b) the senior manager who is responsible for the aspect of the organization’s activities that is relevant to the offence — or the senior managers collectively — fail to take all reasonable steps to prevent that offence being committed.”—

Brought up, and read the First time.

Photo of Margaret Hodge Margaret Hodge Labour, Barking

I beg to move, That the clause be read a Second time.

This goes with the failure to prevent, so I will not speak to the new clause. It literally just sorts out the legalese to ensure that we can get at companies and their directors.

The Chair::

Order. Does the right hon. Lady still wish to move the motion?

Photo of Margaret Hodge Margaret Hodge Labour, Barking

Yes, because I want it on the record. I am just conscious that Members want to get on, and that the argument is the same.

Photo of Stephen Kinnock Stephen Kinnock Shadow Minister (Home Office) (Immigration)

We fully welcome the new clause, which we think is very important to ensure that all perpetrators of economic crime are caught and dealt with.

Photo of Thomas Tugendhat Thomas Tugendhat Minister of State (Home Office) (Security)

I merely point out that, while the new clause addresses many of the points that the right hon. Member for Barking has raised before, it also raises many of the same challenges. For that reason, I will object to it.

Photo of Margaret Hodge Margaret Hodge Labour, Barking

I will not at this point press the new clause to a vote, so I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.