The Relevance of Agency Theory in Imposing Criminal Liability

Introduction: The concept of Corporate Criminal Liability has been certain as Courts struggled to overcome the problem of assigning blames of cruel normalize to fictional embodied levelheaded entities based on continent responsibility. Common law principles are said to govern the in mergedd flagitious liability instances unless otherwise the terms of the statute rival specifically provide to the contrary. Courts at an earlier stage started to bemuse decisions on the basis of Civil Laws based upon Doctrine of reactive Superior and gradually even criminal law was operate in cases with corporate 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. plump on behalf of company. Further for our better understanding we must recognise whats an result? Agency is a comprehensive develop which is used to describ e the relationship where one person is ready by some other in order to bring the latter(prenominal) into legal relations with trey person. The Indian Contract practise does not define Agency but it defines an constituent 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 delineated is called the principal (section 182). It is therefore nothing but a commission of authority from a principal to its agent. Similarly, in the linguistic stage setting of a corporation, the principal engage an agent to perform t asks requiring the agent to make decisions o! n his behalf. In the business world, the main authority relationships concern shareholders and managers or debt holders and stockholders. But it often appears that the principal and his agents mess divergent interests leading to a departure between them. This impinge of interests is commonly known as the agency problem. Corporate criminal liability in context of agency would signify relevancy with one another as we go through the...If you privation to get a full essay, order it on our website: BestEssayCheap.com

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