Bribery Act 2010

As the Bribery Act 2010 is coming into force in June, it is important to ensure that your company has taken adequate steps to avoid finding itself guilty of the new corporate offence of 'failing to prevent bribery'.

The Bribery Act will reform the law regarding bribery and corruption in the UK. The introduction of the new corporate offence is the most significant departure from the current law.

A company could face an unlimited fine if it is found that a person associated with the company bribes another person in order to obtain or retain either business or a business advantage for the company. 'Associated person' covers not only employees/officers of the company but also agents and subcontractors. This is a strict liability offence so it is no defence for the company to argue that it was unaware of the bribery.

Defence and practical steps

The only defence that is available to the company is to prove that is had 'adequate procedures' in place designed to prevent bribery from being committed by people associated with the company.

Given the prospect of an unlimited fine, it is important to ensure that your company is able to show that is has taken the necessary steps to avoid bribery being committed by any associated person. We therefore suggest that you take the following steps:

• Ensure that the company has an anti - bribery policy which effectively deals with the avoidance of bribery within the organisation; and
• Ensure that any contracts with sub contractors providing a service to the company and agents of the company provide a mechanism for termination in the event that bribery is suspected.

If these steps have been taken, the company will be better equipped to argue the defence and avoid facing an unlimited fine.

If you would like us to help you in drafting an anti bribery policy and ensuring that your contracts deal with bribery, please contact Simon Bates on simon.bates@harveyingram.com or call 0121 214 1205 or 0116 257 6146 .