Directors failing to prepare for new law, says Pannone

COMPANY directors are leaving themselves at risk of financial ruin and even imprisonment by failing to act on new legislation, according to law firm Pannone.

It carried out a survey of around 80 companies and found that more than half, 52%, have not reviewed their anti-bribery procedures despite the introduction of the Bribery Act 2010.

The law is due to come into force in the next few months and advisers say it will significantly increase the exposure of individuals and companies to criminal liability.

Those found guilty will face unlimited fines and potentially lengthy prison terms.

Some 65% of respondents said they were concerned about the new offence but only half have reviewed their internal procedures.

The Act, which replaces old and piecemeal legislation, will introduce the new offence of negligently failing to prevent bribery and corruption.

Anthony Barnfather, head of regulatory law at Pannone, said: “Regulators are under unprecedented political pressure to make examples of individuals and organisations alleged to be involved in corruption. Authorities have a wide range of intrusive powers available to them to investigate and prosecute bribery and corruption.”

He added: “Penalties are likely to increase when new offences under the Act are prosecuted as organisations such as the Serious Fraud Office respond to criticism by vigorously pursuing individuals and companies, and the courts seek to send a message about how seriously they regard bribery and corruption.”