Friday, 26 August 2011

Corporate hospitality and the Bribery Act

The Bribery Act 2010 came into effect on 1 July 2011. It is amongst the toughest anti-bribery and corruption legislation in the world.

You can continue to provide bona fide hospitality, promotion and other business expenditure. The intention of the legislation is to catch hospitality which is really a cover for bribing someone.

In a commercial context for there to be an offence, the prosecution must show that the hospitality:

(a) provided an advantage to another person and

(b) was offered or given with the intention of inducing the person to perform a relevant function improperly or in the knowledge of acceptance of the advantage would in itself be improper performance.

It should be understood that improper performance of a function is a performance which amounts to a breach of an expectation that a person will act in good faith, impartially or in accordance with a position of trust. Functions both in the private and public sectors are covered.

The best protection for companies, to ensure they do not infringe the Act, is to publish clear written policies prohibiting gifts, expenses or hospitality which might influence or be seen to influence a contractual or material matter.

My comment: Please contact me if you have any information regarding any potential breaches of the said act by CWaC council members or staff or any of the companies they deal with. 

Read the full story from the source Shoosmiths

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