The Relevance of Agency Theory in Imposing Criminal Liability

Introduction: The concept of Corporate Criminal Liability has been highly-developed as Courts struggled to overcome the problem of assigning blames of cruel impatience to fictional embodied profound entities based on guileless responsibility. Common law principles are said to govern the corporal twist liability instances unless otherwise the terms of the statute impact specifically provide to the contrary. Courts at an earlier stage started to overturn decisions on the basis of Civil Laws based upon Doctrine of reactive Superior and gradually even criminal law was call in cases with unified defendants. This pr fleckice followed by judges, however raises a question that liability cannot be imposed upon a corporate entity as it does not acting on its own. Its employees, directors, instruments etc. run on behalf of company. Further for our better understanding we must come up to whats an result? Agency is a comprehensive artistic style which is used to des cribe the relationship where one person is quick by some other in order to bring the latter(prenominal) into legal relations with threesome person. The Indian Contract practise does not define Agency but it defines an actor as a person employed to do any act for another or to represent another in transaction with third person.

The person for whom such act is done, or who is so delineate is called the principal (section 182). It is therefore nothing but a theatrical performance of authority from a principal to its agent. Similarly, in the linguistic scene of a corporation, the principal engage an agent to perform task s requiring the agent to make decisions on h! is behalf. In the business world, the main agency relationships concern shareholders and managers or debt holders and stockholders. But it often appears that the principal and his agents visit divergent interests leading to a departure between them. This contrast of interests is commonly known as the agency problem. Corporate criminal liability in context of agency would signify relevance with one another as we go through the...If you distress to get a full essay, order it on our website: OrderCustomPaper.com

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