Corporate probation

Where the US goes, others tend to follow. Sometimes, this is due simply to the attraction of a good idea. And in the realm of corporate regulation, the US shows nothing if not a flair for implementing new ideas.

One US regulatory innovation gaining international traction at the moment is the use of non-prosecution agreements and deferred prosecution agreements (NPAs and DPAs).

These are formal written agreements negotiated between a prosecutor and a defendant company. Pursuant to an NPA, the prosecutor, in return for cooperation and enforceable undertakings, agrees not to pursue a criminal prosecution. Under a DPA, the prosecutor agrees not to pursue a criminal prosecution for a deferred period of time (normally three to five years) during which the defendant company is obliged to comply with certain undertakings in default of which it will face prosecution.

This is front-ended corporate probation. And its a tool that has a place ... READ MORE

Gregor Allan FCIS - Released by NZLawyer - 21 September 2012