TITLE:
The Criminal Liability of Parent Corporations for Acts of Its Subsidiaries under Criminal Law in Jordan: A Comparative Study
AUTHORS:
Raed S. A. Faqir
KEYWORDS:
Corporate Liability, Parent-Subsidiary Relationship, Criminal Law, Jordan
JOURNAL NAME:
Beijing Law Review,
Vol.7 No.3,
September
2,
2016
ABSTRACT: The present study deals with many legal aspects of criminal liability of legal entities, as well tries to explain the legislative and judicial attitude towards this sort of liability. The current research examines laws on criminal liability of parent companies for illegal acts of the subsidiary under criminal legislation in Jordan, and discerns legal norms and applicable aspects related to the doctrine of corporate criminal liability and the legal relationship of the parent company with the subsidiary. This study will first conduct a comprehensive analysis of the provisions of the Jordanian Company Law on the relationship between the parent company and the subsidiary. Issues of corporate criminal liability under the Jordanian legal and other selective comparative legal systems, several aspects of legal systems of common law and civil law about the criminal liability of parent corporations for conduct of parties outside of organization, or for offences of dissolved corporations, or for offences of predecessor’s corporations will be discussed. On the light of secrecy of studies in the direct theme of the present study and ambiguity of regulatory and legal framework in this topic, the researcher will carry out the analysis of the related legislation, including criminal laws merely with respect to the criminal liability of corporation for offences committed by its subsidiaries in order to revamp the legal framework of this issue. An attempt will take into consideration both national and international legal attitudes towards the theme of this research at national and international levels. Finally, this study is a bold step for the detection of weaknesses in the Jordanian legislation in regulating this matter, which is necessary for the interest of the national economy and to protect companies, corporation, economic units and their shareholders, and to create an attractive investment environment for investors.