The Bribery Act – are you prepared?
June, 2011
The Bribery Act will become law on 1st July 2011 but are you ready for this new legislation?
When the Bribery Act (the Act) comes into force, it will apply to all businesses with an operation in the UK. Companies are expected to take ‘appropriate procedures’ to prevent incidences of bribery occurring in any part of their operation, both in the UK and internationally. Many company directors do not think that this Act applies to their business, but not being prepared will be no defence if the Serious Fraud Office (SFO) decides to investigate.
It is really important that you examine your own internal procedures to identify any potential areas of weakness and to ensure full compliance with the Act. Particular attention should be given to your corporate relationships with any agents or third parties and make them aware of your company’s anti-corruption policies.
Check that your Directors and Officers’ (D&O) liability insurance will provide effective cover for the directors of the company, and that it does not exclude legal costs associated with claims arising from the Act. Although bribery is a corporate crime, if the company is charged under the Act, then the Directors are likely to be charged for failing in their corporate governance duties. Directors & Officers liability insurance will help cover the costs associated with providing a legal defence (although it will obviously not cover any fines if the directors are found guilty).
If you need any help in arranging Directors & Officers liability insurance to protect you in these circumstances please don’t hesitate to contact me.
