Measures of criminal law nature against legal entities: types and grounds for application

07/ 02/ 2022

Author: Natalia Ponomarenko, lawyer of Dynasty Law & Investmen In our minds, it is common situation when the officials of the enterprise are responsible for the acts committed by the enterprise. However, the Criminal Code provides for cases when coercive measures of a criminal law nature may be taken against an enterprise as a measure of responsibility for acts committed by its authorized persons. The list of crimes for which coercive measures can be applied to the enterprise is quite wide. Coercive measures are possible both for crimes in the field of prevention of corruption and in the sphere of official activity, and for legalization of proceeds from crime, as well as for crimes against humanity and against the foundations of the constitutional order of Ukraine. In the vast majority of cases, the mere fact of the guilt of the authorized person of the enterprise in committing any of these crimes is not enough for the court to apply to the enterprise measures of a criminal nature. The crime must have been committed in the interests of the enterprise, which led to its illegal benefit or created conditions for such benefit, or the crime was aimed at evading the enterprise from liability under the law. There are three types of criminal law measures that can be applied to an enterprise: a fine, confiscation of property and liquidation. At the same time, confiscation of the companys property to the state revenue is possible only in addition to the liquidation of the enterprise and is not applied separately. When applying measures of a criminal law nature, the company is also obliged to reimburse the damages and damages in full, to pay to the state the amount of illegal profit that was received or could have been received by the company. Therefore, we urge business owners to consider the possibility of imposing liability on the company in case of suspicion of committing a crime, and to seek legal assistance to minimize possible negative consequences for business.

Author: Natalia Ponomarenko, lawyer of Dynasty Law & Investmen

In our minds, it is common situation when the officials of the enterprise are responsible for the acts committed by the enterprise. However, the Criminal Code provides for cases when coercive measures of a criminal law nature may be taken against an enterprise as a measure of responsibility for acts committed by its authorized persons.

The list of crimes for which coercive measures can be applied to the enterprise is quite wide. Coercive measures are possible both for crimes in the field of prevention of corruption and in the sphere of official activity, and for legalization of proceeds from crime, as well as for crimes against humanity and against the foundations of the constitutional order of Ukraine.

In the vast majority of cases, the mere fact of the guilt of the authorized person of the enterprise in committing any of these crimes is not enough for the court to apply to the enterprise measures of a criminal nature. The crime must have been committed in the interests of the enterprise, which led to its illegal benefit or created conditions for such benefit, or the crime was aimed at evading the enterprise from liability under the law.

There are three types of criminal law measures that can be applied to an enterprise: a fine, confiscation of property and liquidation. At the same time, confiscation of the company’s property to the state revenue is possible only in addition to the liquidation of the enterprise and is not applied separately.

When applying measures of a criminal law nature, the company is also obliged to reimburse the damages and damages in full, to pay to the state the amount of illegal profit that was received or could have been received by the company.

Therefore, we urge business owners to consider the possibility of imposing liability on the company in case of suspicion of committing a crime, and to seek legal assistance to minimize possible negative consequences for business.