What is the identification theory in company law?

What is the identification theory in company law?

5.1 The Identification Doctrine. The identification doctrine has been described as being the main rule for determining corporate liability for both civil and criminal wrongs carried out by agents and the servants of the company [7] . The identification doctrine is thus also known as the directing mind theory.

What is the identification principle?

The identification principle requires identifying and establishing a directing mind and will [“DMW”] of the company, and then proving corporate criminal liability through his/her conduct and state of mind. It applies to all types of offences, including those which require mens rea.

What is corporate criminality theory?

Today there are two main theories of corporate liability: identification and imputation. The narrower theory is identification, which assumes that liability is direct. The representatives or top officers of the corporation are the liable parties in this theory, along with those to whom they delegate certain activities.

Why is the identification doctrine no longer fit for purpose in today’s complex corporate structures?

Critics argue that the identification doctrine unfairly impacts on smaller companies where corporate liability is least needed while large companies avoid it through the decentralisation of responsibilities, making it difficult to identify a senior individual who may be fixed with liability for fraudulent or other …

What is the purpose of the identification doctrine?

The doctrine of identification was a principle used in old English law which stated that a person who gets injured while traveling due to another’s negligence cannot claim damages if the driver of the conveyance is contributorily negligent.

What theory best explains corporate crime?

1 Theory of Differential Association. Sutherland´s Theory of Differential Association is said to be the first and serious effort for explaining criminal behavior and at the same time one of the most influential social learning theories of crime.

Is white-collar crime a theory?

Rational Choice Theory, created by Cesare Beccaria in 1764, explains white collar crime as a life of balancing choices and choosing the one with the most reward. Although Beccaria is best known for his work on the death penalty, he contended that crimes are committed through making rational choices.

What is the purpose of the identification doctrine criminal justice?

The doctrine of identification is often used to explain how corporations can commit criminal offences in their own right. Courts identify the natural persons who can be said to personify the corporation, and attribute their conduct and mental states to the corporation.

What is corporate liability in IPC?

Section 11 of Indian Penal Code, 1860 (the Code) define person. [4] And therefore, Corporate Criminal Liability means the extent to which a Corporation as a legal person can be held criminally liable for its acts and omissions and for those of the natural persons employed by it.

Can a company be criminally prosecuted?

There is no dispute that a company is liable to be prosecuted for criminal offences. However, the company being an artificial person cannot have the requisite mens rea, hence the question whether a company could be prosecuted for an offence for which the mandatory sentence is imprisonment.

Where does the doctrine of identification come from?

The concept of Doctrine of Identification finds its roots in the English Law. The growth of this doctrine has helped in the implication and prosecution of the criminal activities of directors / managers of many companies. The corporate personality of a company is different and separate from the promoters, directors or owners of the company.

Why is the identity of an organization important?

Organizational identity is important since it affects actions, interpretation, and decision making of organizational members and the management. Several studies also show that organizational identity has a huge impact on organizational change processes. This paper attempts to address the following questions.

What should be included in an identity statement?

Identity as a statement of central characters defines what is important and essential to the organization. (Albert & Whetten, 1985). The criterion of distinctiveness emphasizes that the identity statement should be able to distinguish the organization from others. A distinctive identity statement usually includes organizational ideology, management

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