Directors in the dock
In court. The charge follows the death of an employee who fell through the roof of an industrial unit at the headquarters of Lion Steel Equipment Ltd (L) in 2008. This is only the second of its kind to be brought under the Corporate Manslaughter and Corporate Homicide Act 2007 (CMCHA); the first was the conviction of Cotswold Geotechnical Holdings Ltd earlier this year (yr.9, iss.12, pg.8, see The next step). In addition, L has been charged under s.2 and 33 of the Health and Safety at Work etc. Act 1974 (HSWA) for failing to ensure the safety at work of its employees.
Similar story. In addition, three of the company’s directors have been charged with gross negligence manslaughter and face charges under s.37 of the HSWA. This is a development you need to take seriously. As this case proves, if directors are found to have ignored their duties, the enforcement bodies won’t hesitate in going after them.
Tip. Directors and managers must be seen to be driving a positive health and safety culture within an organisation. This means making sure health and safety is a regular agenda point at board meetings, not turning a blind eye to dodgy work practices and appointing one director to be responsible for health and safety.
Small minded. The CMCHA was introduced to secure convictions against large organisations but, as with the Cotswold case, L is a relatively small company. Although this case is unlikely to set any ground breaking case law, or significant guidance on how a large company would fare, you need to be acutely aware of the risks.
Note. If found guilty of corporate manslaughter, the fine L receives will almost certainly be in excess of £500,000 and could run into millions of pounds. That’s enough to cripple most businesses.
For a previous article on corporate manslaughter, visit http://healthandsafety.indicator.co.uk(HS 10.01.01).
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