Putting firms in the dock

May 23rd at 16:15
23-05-2015 16:15:42+07:00

Putting firms in the dock

The amended Penal Code draft consists of some major changes which are directly relevant to the business community.

One of them – currently the subject of a heated debate – is should businesses, as legal entities, be subject to criminal proceedings. To date, criminal acts must always be directed at personal individuals in order to come in line with the current laws.

The amended Penal Code draft has, however, tried to address the criminal behaviour of businesses by defining them as individual legal entities. The question of what sanctions to apply, or whether businesses should be regarded as legal entities subject to criminal proceedings at all, has sparked a hot debate, with both lawyers and members of the public weighing in with their opinions.

According to Nguyen Van Hoan, deputy head of the Department of Criminal and Administrative Law under the Ministry of Justice, it is important to allow for the criminal liability of businesses as legal entities because violations have become increasingly widespread in recent years, causing serious consequences economically and socially.

For example, in past years there have been rising cases where businesses deliberately discharged wastewater into the environment, with huge negative impacts on the health and means of living for people in the surrounding areas. However, under current regulations such violators are not subject to criminal proceedings, and will instead only incur meagre fines – the equivalent to a rap on the knuckles – but nothing approaching a meaningful deterrent to reoffending.

Meanwhile, when those affected are seeking compensation they must provide concrete evidence proving how much damage they incurred and how this has been evaluated. Using civil law to handle these cases is often time-consuming and ends with claimants coming away empty-handed.

Within this context, the amended Penal Code draft has proposed a range of sanctions applicable to misdeeds by businesses, including fines; temporarily suspending business licences, or temporarily suspending the operation of businesses; permanently revoking business licences, or suspending their operations; or barring offending businesses from operating in certain areas; or barring them from raising capital.

Lawyer Le Viet Ha, director of Vinh Duc Law & Associates said that 119 member countries of the International Convention on Anti-Corruption had regulated the criminal liabilities of business legal entities. As such, Vietnam should follow suit to ensure the fair treatment for local businesses.

The proposed new sanctions have, however, generated a backlash of concern. For example, in cases where a business faces having its licence taken back permanently, this would also affect the lives of its labourers, who may be completely blameless in the firm’s misconduct. In such a case, objectors have asked, who will bear the responsibility of creating new jobs or paying compensation to the out-of-work labourers?

vir



NEWS SAME CATEGORY

Trade deficit soars to $3.7 billion

The national trade deficit this year has soared to nearly US$3.7 billion, after hitting $2.07 billion in the first four months.

First project opens in Da Nang Hi-tech Park

Tokyo Keiki Precision Technology Inc. inaugurated its first plant outside Japan at the city 's Hi-Tech Park on May 22, following eight months of construction.

Deputy PM upset at fall in farm exports

Deputy Prime Minister Hoang Trung Hai has urged ministries and relevant sectors to find solutions to overcome difficulties in exporting agriculture, forestry, and...

Fruit festival to open in HCM City in June

HCM City will host the Southern Fruit Festival in its Suoi Tien Tourist Area in District 9 from June 1-20 with a view of honouring values of exotic fruits and...

Accountants get together in Da Nang

Experts from the UK, Japan, Indonesia, Australia, and Viet Nam shared experiences, initiatives and research in accounting and business administration during a...

Quang Ninh calls for capital for 71 projects

The northern province of Quang Ninh has released a list of 71 projects in need of investment capital for 2015 to 2020.

Many small enterprises hit the wall

For the first four months of this year, 3,249 small enterprises have closed their business, and 19,000 others temporarily stopped operations, a survey conducted by...

Economic restucturing ‘too slow'

Although economic restructuring has been recognised as a vital task, the process remains slow and requires greater efforts for a more comprehensive outcome...

HCM City's enterprises eye Myanmar market

HCM City is implementing several trade promotional activities in Myanmar to help its enterprises effectively tap into potential markets, the Vietnam Economic Times...

American investors see Vietnam as strategic market

Ranked No. 7 of 101 countries and territories investing in Vietnam for the past five years, the United States has invested more capital in the country through new...


MOST READ


Back To Top