Corporate Criminal Liability Update: June 2026
For companies and partnerships, an important governance and compliance development has come into force.
As of 29 June 2026, an organisation may be criminally liable where a senior manager commits a criminal offence while acting within the actual or apparent scope of their authority.
The change widens the previous approach, which often required the individual’s conduct to be attributed to the company through someone at, or very near, board level.
Under the new test, the focus is less on job title and more on function.
A “senior manager” may include someone who plays a significant role in making decisions about, or managing, the whole or a substantial part of the business. Depending on the organisation, that could include divisional heads, regional leaders, senior finance leads, heads of compliance or operational managers.
There is no “reasonable procedures” defence under this regime. However, good governance and clear internal processes remain highly relevant.
We recommend businesses take some time to address the following:
- Identify who may qualify as a senior manager by function;
- Review delegated authority and reporting lines;
- Check that key risk areas are properly covered;
- Update training and escalation procedures; and
- Review D&O insurance, indemnities and internal investigation processes.
This is not about creating unnecessary paperwork. It is about understanding where real authority sits within the business and ensuring that appropriate controls sit around it.
For support reviewing your governance, compliance processes or senior manager responsibilities, please get in touch with the Tend Legal team.
This article is for general information purposes only and is not advice on your specific situation, and does not constitute legal advice.
