UK Bribery Act
Is your house in order ?
Any Indian company that does some business in the UK, irrespective and not limited to those listed there, or which might have a physical set-up in the UK, are now potentially liable for prosecution under the recently enacted anti-corruption law - ‘The UK Bribery Act 2010’. Having received the royal assent, the Act came into force with effect from 1 July 2011. The objective is to regulate bribery and corruption offences committed both in the UK and abroad. The Act applies to UK companies as well as companies that carry on business in the UK, British citizens and persons residing in the UK.
The introduction of the corporate offence of failing to prevent bribery is a key feature of the new Act. Any associated person that performs services for or on behalf of the company, e.g., an agent or employee – or subsidiary will also come under the realm of the new Act. The only affirmative statutory defense available to companies charged with the corporate offence is to demonstrate that they have “adequate procedures” in place to prevent bribery.