Law of Business Organization for Prosecution - myassignmenthelp

Question: Discuss about theLaw of Business Organization for Prosecution Agreements. Answer: Directing Mind and Will In context of the organization, any person who manages, controls, or make decisions in the organization is considered to be the mind and will of the organization. It is essential that the principle must be fulfilled in order to prove the mental factorfor any kind of civil or criminal offences being planned againstanorganization(LawTeacher, 2017). Hence, the identification doctrine is recognized as the directing mind theory. From historical point of view, it has been proved to be a hindrance as it prevents the companies from being apprehended as responsible for the actions performed by the persons within the organization. Thus, in order to establish organization's offence, the individual who is the brain behind the organization must be proved to be the directing mind and will of the organization. (Grimes, et al., 2017). The individuals who are positioned at the topmost level in the organization must be held responsible and accountable for any flaw or faulty conduct of the organization. Thus the directing mind and will of any organization leads to the board of directors, CEO, managing director and all other executives who are responsible and partake in the decision making of the organization. However, there may be other subordinates who may indirectly act as mind and will of the organization but may not be on the top management sector in the organization. As of today, in huge companies, because of existence of disparity between the directing mind and the functional authorities, it has become difficult to impose criminal liability on all of them(Taylor Wessing LLP, 2016). Piercing the Corporate Veil The term "corporate veil" is used to describe the removal or separation of any corporate executive or owner from the third party shareholders. Basically, a corporation is a separate entity - limited liability company (LLC) that is formed to protect and shield the owners of the organization from private accountability for the amount overdue or negligent acts in the company. "Piercing the corporate veil" is a phrase that describes the actions taken by a court to establish the liability of the shareholders and owners of the LLC for the amount overdue and liability of a corporation. Corporations are generally considered to be as separate entities, different bodies and under normal circumstances, if an organization is prosecuted, the owners or executives are not brought in to the proceedings. (Murray, 2016). However, in some situations, the officers and shareholders of the corporation can be sued for the acts of negligence and also for debts, and this action of holding the shareholders to be responsible and suing him is known as "piercing the corporate veil". In a similar manner, the limited liability company owners can be prosecuted for the flaws, frauds, negligence and debts in the business. There are two situations, where the court can pierce the corporate veil and the shareholders and the members of the LLC to be sued. It includes the fraudulent acts or deals by the corporation and willful act of the shareholders and officers for the purpose of corporate gain to be placed over the benefits of the public(Jimerson Snell, 2016). References Grimes, J., Niblock, R. Madden, L., 2017. Corporate criminal liability in the UK: the introduction of deferred prosecution agreements, proposals for further change, and the consequences for officers and senior managers. [Online] Available at: https://uk.practicallaw.thomsonreuters.com/4-547-9466?transitionType=DefaultcontextData=(sc.Default)firstPage=true [Accessed 19 September 2017]. Jimerson, C. B. Snell, B. N., 2016. The Five Most Common Ways To Pierce The Corporate Veil And Impose Personal Liability For Corporate Debts. [Online] Available at: https://www.jimersoncobb.com/blog/2016/03/the-five-most-common-ways-to-pierce-the-corporate-veil-and-impose-personal-liability-for-corporate-debts/ [Accessed 19 September 2017]. LawTeacher, 2017. Corporate Liability In Criminal Law. [Online] Available at: https://www.lawteacher.net/free-law-essays/business-law/corporate-liability-in-criminal-law-business-law-essay.php [Accessed 19 September 2017]. Murray, J., 2016. Piercing the Corporate Veil - What Business Owners Need to Know. [Online] Available at: https://www.thebalance.com/piercing-the-corporate-veil-definition-398410 [Accessed 19 September 2017]. Taylor Wessing LLP, 2016. Corporate Liability: What exactly does it mean to prove a company guilty?. [Online] Available at: https://united-kingdom.taylorwessing.com/en/corporate-liability-what-exactly-does-it-mean-to-prove-a-company-guilty [Accessed 19 September 2017].