A View From The Exchange: A new era for Corporate Crime? The Expansion of Corporate Criminal Liability Under the UK’s Crime and Policing Bill
29 October 2025
On 16 October 2025, the UK Government's Crime and Policing Bill (the Bill) took centre stage in the House of Lords for its second reading. In the context of the wide-ranging social justice reforms proposed by the Bill, it is not surprising that clause 196 received little attention.
Clause 196: A quiet reform
While the second reading debate focussed on the social justice issues covered by the Bill, clause 196 proposes a notable expansion to corporate criminal liability in the UK. If enacted, clause 196 would create a statutory basis for holding a company or partnership criminally liable for any offence committed by a senior manager – so long as that senior manager was acting within actual or apparent scope of their authority.
Clause 196 is the latest step in the Government's reform of the identification doctrine started by the Economic Crime and Corporate Transparency Act 2023 (ECCTA). The ECCTA was itself significant. Notably, the ECCTA brought in the 'failure to prevent fraud offence' which came into force on 1 September 2025 (see our article here). The ECCTA also introduced provisions attributing criminal liability to a company or partnership for certain economic crimes committed by senior managers acting within the actual or apparent scope of their authority (see our earlier article here) – if enacted, these provisions would be replaced by clause 196.
From ‘Directing Mind and Will’ to ‘Senior Manager’
Traditionally, the common law identification doctrine has held a corporation criminally liable for offences of individuals at the top – those who represent the 'directing mind and will' of the company. Clause 196, however, would significantly widen the net of attribution. Although clause 196 is not intended to replace the common law identification doctrine, it would expand criminal liability beyond directors and executives to 'senior managers' whose actions could trigger corporate criminal liability, provided they were acting within the actual or apparent scope of their authority.
More than that, clause 196 would extend corporate criminal liability to all offences – not just the economic crimes currently covered by the ECCTA (such as fraud, money laundering, bribery and tax evasion). This opens the door for enforcement of more diverse offences, with the most likely contenders being offences under environmental, data protection, modern slavery, and competition laws, as well as criminal market abuse, giving prosecutors greater scope to investigate and prosecute corporates using an expanded regime.
What's Next?
The Bill is set to move to the Committee stage from 10 November 2025, where it will undergo further scrutiny and debate. For now, there is little sign that clause 196 will encounter significant opposition or amendment. If enacted, the UK will enter a new era of corporate crime.
The Ashurst Corporate Crime and Investigations team will be watching closely as the Bill progresses through Parliament.
Author: Charlotte Ball, Associate
