Supreme Court lays down three-stage test for corporate criminal liability

The Supreme Court has laid down a three-stage framework to determine when an individual’s conduct and mens rea can be attributed to a company. Courts must first examine the company’s constitutional documents to identify the authority for the relevant act, then consider whether that authority was delegated, and finally, if neither answers the question, whether the purpose of the law requires the employee’s actions to be attributed to the company. The framework gives courts a structured way to assess corporate criminal liability. Merely holding a particular position is not, by itself, enough for attribution, although the person’s status may still be relevant depending on the circumstances and the purpose of the statute.