Sentencing proposals for corporate manslaughter

The Sentencing Advisory Panel (SAP) said firms could be fined an even higher sum for a particularly serious offence, or if they had previous convictions. The new offence - due to come into force next April - is designed to make it easier to prosecute companies whose negligence causes death.

A report by the SAP said its recommendations could lead to larger fines than those previously handed out by the courts for health and safety offences.

It also suggested that large national companies convicted of the crime could be forced to publish details of the case in a newspaper, TV or radio advert. The legislation will allow courts to impose a "publicity order" to name and shame offenders.

In addition, the SAP suggested that details of the conviction be included in the company's annual report and shareholders notified.

Minimum fine

The panel's consultation document said the starting point for a fine - in the case of a first-time offender who pleaded not guilty - should be 5% of the company's annual turnover, calculated as an average over the previous three years.

Aggravating or mitigating factors could lead to a fine of between 2.5% and 10% of turnover, with the worst cases leading to an even higher penalty, it added.

The panel proposed setting a minimum fine for corporate manslaughter, because fines against some small companies would be relatively low if based on their turnover. It also warned that courts should be aware that some firms may try to alter their accounts in an attempt to lower their fines.

Biggest penalties

The largest health and safety fine to date in the UK was £15 million against Transco in 2005 for regulation breaches which led to the deaths of four members of a family in a gas explosion in Larkhall, South Lanarkshire, in December 1999.

After the Hatfield train derailment, which claimed four lives in 2000, maintenance firm Balfour Beatty was fined £7.5 million and Network Rail was handed a £3.5 million penalty.

Responses to the SAP's consultation paper can be submitted until February 7. The panel will then hand its recommendations to the Sentencing Guidelines Council, chaired by Lord Chief Justice Lord Phillips, which will draw up final guidelines for judges.