The German Federal Court of Justice has ruled that establishing a compliance management system, which aims to stop legal breaches, can reduce fines levied on companies under Section 30 of the Administrative Offences Act.
German Federal Court of Justice, Karlsruhe, Germany. Image: Bildagentur Zoonar GmbH / Shutterstock
Establishing a compliance management system which aims to stop legal breaches can reduce fines under Section 30 of the Administrative Offences Act, the German Federal Court of Justice has ruled in a landmark judgement (BGH 1 StR 265/16).
Dr Daniel Kaiser, counsel at international law firm CMS Hasche Sigle in Stuttgart, explained that previously there was no corporate criminal law in Germany. Criminal proceedings could only be brought against a person, not a company. However, under Section 30, financial penalties could be imposed on companies whose managerial personnel have committed criminal offences.
Kaiser said: "If a person with mana
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