
Earlier to April 6, 2008, it was possible for a corporate unit, such as a company to be prosecuted for an array of criminal offences, including the general law violation of gross slackness manslaughter. However, in order for the company to be culpable of the offence, it was also essential for a senior individual to be culpable of the offence. It was identified as the identification principle.
On 6th April 2008, the Corporate Manslaughter and Corporate Homicide Act 2007 came into existence throughout the United Kingdom. In Northern Ireland and England and Wales, the new offence is called as corporate manslaughter, whereas in Scotland it is called as corporate homicide. The offence applies to the companies and other corporate bodies operating in United Kingdom, whether they are incorporated in UK or abroad. It also applies if to police forces as well as Government departments.
The new offence was made for providing a means of liability for serious failings of management across the organization. The original aim was to overcome the problems at common law of 'aggregation' and 'identification' in relation to incorporated bodies. Now, the scope of the offence is significantly wider than just overcoming these 2 problems and now, it involves liability for organizations which could never be prosecuted previously for manslaughter. This new offence is meant to work in combination with the other forms of liability like gross negligent manslaughter for individuals and other safety and health legislation.
The offense applies to:
Police Forces
Trade unions, partnerships and employers’ associations
Corporations
Various, but not all, government departments.
In Northern Ireland and Wales and England, the consent of Director of public Prosecutions (DPP) is needed before taking a corporate manslaughter case to the court. A corporation which is guilty of the offence has to pay an unlimited fine. On conviction a corporation may be ordered to publicize its failures, or to remedy any breach. The senior managers, directors or other individuals cannot be prosecuted for the offence the organization itself has to face prosecution. However, any individual can be prosecuted for healthy and safety offences.


In case that a company does not have enough funds to pay their employees, an exclusive insolvency agreement is made according to the Insolvency Act 1986. Basically, the law deals with the insolvency of individuals and companies in the