Company sentenced in first corporate manslaughter trial

Cotswold Geotechnical (Holdings) Ltd (Cotswold), which earlier this week had been found guilty of corporate manslaughter under the Corporate Manslaughter and Corporate Homicide Act 2007, has been sentenced and fined £385,000 (the offence may be penalised by an unlimited fine).

The gravity of the fine was said to reflect the seriousness of the offence. The court acknowledged that the company's financial state and the possibility that a greater fine would cause the company's insolvency meant that the fine could be paid over a period of ten years at £38,500 per annum. The level of fine was said to act as a deterrent and to ensure that other companies follow health and safety guidance.

The successful prosecution of Cotswold demonstrates the importance for businesses to have a health and safety culture and to ensure that everyone takes responsibility for improving health and safety. Larger companies than Cotswold should also take notice of the level of the fine. At the time of the offence, Cotswold had only eight employees. It is likely that a larger organisation will face a much greater level of fine.

Source: Cotswold Geotechnical fined £385,000 in first corporate manslaughter conviction, Telegraph.co.uk, 17 February 2011.