Is it time to change approaches to bringing businesses to criminal liability?

Advocacy
14:56 Mon 02.09.24 209 Reviews
Print

The institution of criminal liability of legal entities, introduced in 2014, is ineffective. For example, the list of sanctions that can be imposed on businesses is quite limited and unbalanced.

For these reasons, in order to fundamentally change the approach to holding a legal entity liable for committing a criminal offense on its behalf or in its interests, a group of MPs registered in the Parliament the draft Law No. 11443 dated 25.07.2024 «On Amendments to the Criminal Code of Ukraine, the Criminal Procedure Code of Ukraine and Other Legislative Acts of Ukraine on Bringing Legal Entities Liability for Corruption Criminal Offenses in Line with International Standards».

The document proposes to provide for grounds for applying criminal law measures to a legal entity regardless of bringing an individual to justice, expanding the list of criminal law measures and increasing the amount of a fine that may be applied to a legal entity, and the possibility of applying special confiscation based on a court order to apply criminal law measures.

It is also envisaged that the legal entity will be subject to additional (non-financial) criminal law measures. It is a rather broad list of prohibitions on activities for a certain period, namely:

1) to participate in public procurement;

2) to use a license;

3) participate in the privatization of state and municipal property;

4) participate in the lease of state and municipal property (including the extension of the lease agreement);

5) obtain and extend a special permit for subsoil use (including suspension of a special permit for subsoil use);

6) participate in the bodies of social tripartite dialog;

7) purchase bonds of internal state loans of Ukraine;

8) create and participate in the work of self-regulatory organizations;

9) to provide and receive advertising;

10) to carry out sponsorship;

11) participate in public-private partnerships;

12) participate in joint ventures.

In addition, non-financial measures of a criminal law nature will include temporary restrictions on the following rights and benefits:

1) to receive any benefits and assets from the state and the community;

2) to attract, use, and utilize funds from international technical projects and international financial transactions;

3) to receive state aid by business entities (to be a recipient of state aid);

4) acquire the status of a resident of Diia City;

5) receive state and other financial support for export activities.

The Ukrainian National Bar Association's Committee on Anti-Corruption Policy and Compliance, having analyzed the draft, concluded that such a legislative initiative could be widely applied to an unlimited number of cases and business entities, including those of good standing. As a result, it will increase the pressure on business many times over.

In today's reality, when business is already struggling, implementing the provisions of the law as drafted will inevitably lead to a freeze in business activity with all the negative consequences that this entails. And these potentially negative risks outweigh the benefits of implementing the proposed rules by several times.

Therefore, the UNBA concludes, it is advisable to postpone the adoption of the draft law for another time.

Popular news

The process of signing the Convention on the protection of the profession of advocate was taken under control by the Verkhovna Rada

Guarantees of the practice of law

The process of signing the Convention on the protection of the profession of advocate was taken under control by t…

The Ministry of Justice sent the text of the translation of the Council of Europe Convention on the protection of the advocate to the Ministry of Foreign Affairs «for review and approval». The main legal authority also expressed its support for the Ministry of Foreign Affairs regarding the signing and ratification of this Convention.

16:49 Wed 03.09.25 131
Statement by the UNBA Committee on the «National Police investigation»

Guarantees of the practice of law

Statement by the UNBA Committee on the «National Police investigation»

The media is spreading news that the National Police of Ukraine is allegedly investigating a criminal offense committed by the leadership of the Ukrainian National Bar Association.

13:35 Wed 03.09.25 107
Without the protection of advocates, there will be no fair trials in Ukraine — forum in Odesa

Discussion

Without the protection of advocates, there will be no fair trials in Ukraine — forum in Odesa

Identifying an advocate with their client undermines the foundations of justice, as it deprives individuals of the opportunity to exercise their right to defense, forces advocates to avoid participating in high-profile cases, and ultimately renders procedural guarantees meaningless. Without this, fair trial is impossible.

14:42 Fri 29.08.25 113
The number of cases where advocates are identified with their clients is growing – UNBA report

Guarantees of the practice of law

The number of cases where advocates are identified with their clients is growing – UNBA report

Advocates are increasingly being held hostage to political processes, with them being equated with their clients. Such actions undermine the independence of the profession and create an atmosphere of intimidation, as a result of which Ukrainian citizens are deprived of their right to defense.

13:19 Thu 28.08.25 111
What data is sufficient to initiate an investigation – UNBA comments on draft law No. 12439

Legislation

What data is sufficient to initiate an investigation – UNBA comments on draft law No. 12439

The problem of law enforcement pressure on business remains one of the most acute for the Ukrainian economy. The lack of regulation of certain procedures in the Criminal Procedure Code leads to abuses, as a result of which entrepreneurs find themselves in a state of legal uncertainty.

19:41 Fri 22.08.25 115
Law on advocacy and the Council of Europe Convention: the UNBA assessed compliance (comparative table)

Guarantees of the practice of law

Law on advocacy and the Council of Europe Convention: the UNBA assessed compliance (comparative table)

The Ukrainian National Bar Association has prepared and published a comparative table showing the extent to which Ukrainian legislation complies with the provisions of the Council of Europe Convention on the protection of the profession of advocate.

14:58 Fri 22.08.25 110
The Verkhovna Rada is waiting for the Minister of Justice to take action on signing the Convention on the protection of the profession of advocate

Guarantees of the practice of law

The Verkhovna Rada is waiting for the Minister of Justice to take action on signing the Convention on the protection of t…

Ukraine, which was directly involved in the preparation of the world's first Council of Europe Convention on the protection of the profession of advocate, has still not signed it. There appear to be no formal objections, but no real steps have been taken towards accession either.

13:51 Thu 21.08.25 149
Australian advocate apologizes in court for fake AI quotes

Abroad

Australian advocate apologizes in court for fake AI quotes

In Australia, a royal advocate apologized to a judge for submitting documents in a criminal case against a teenager accused of murder that contained fabricated quotes and non-existent court decisions generated by artificial intelligence.

13:46 Tue 19.08.25 116

Надішліть файл із текстом публікації у форматі *.doc, фотографію за тематикою у розмірі 640х400 та Ваше фото.

Оберіть файл