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Garparotd Grmemkoc CmojmcmtyEorgh :>?4

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Bcajoc gaktogts ........................................................ 7

Mktra`ugtmak............................................................... 0

Oedrmgos ................................................................... =

Tkmtd` Wtotds......................................................... ?>

Durapd ok` thd Em``cd Dost .................................... ?7

Jdcbmue ................................................................. ?0

Gzdgh Zdpujcmg ..................................................... ?2

Irokgd ................................................................... ?=

Bdreoky................................................................ :?

Mtocy........................................................................ :7

Cuxdejaurb .......................................................... :9

^acok` ................................................................... :8

Zaeokmo ................................................................ 7>

Zussmo.................................................................... 7:

Wcavofmo ................................................................. 70

Wpomk ..................................................................... 79

Phd Kdthdrcok`s .................................................... 7=

TOD....................................................................... 0:

TF ......................................................................... 00

Osmo ^ogmimg ............................................................... 08

Oustrocmo................................................................. 0=

Hakb Fakb ............................................................ 4:

Mk`mo....................................................................... 44

Mk`akdsmo............................................................... 48

Lopok .................................................................... 9>

Eomkcok` Ghmko...................................................... 9:

Wmkbopard.............................................................. 90

Garparotd grmed ....................................................... 92

Hdot eop ................................................................... 9=

Rarc`wm`d gaktogt mkiareotmak .............................. 2?

g

aktd

kts

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7Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

Oustrocmo>7

Ldrrde Kb +9?: 8=:: 8>9=

Fmrstdk Wgatt +9?8 =:9: 44?2

Jdcbmue 272:

Zmghor` Whorpd +84 :: 8:9: 0:2

Eaktsd Idrrdr +84 :: 8:97 49:

Gzdgh Zdpujcmg ::: 444 :?:

Emghoc Losdf +0:> ::: 444 ::=

Cu`vmf Zuzmgfo +0:> ::: 444 :44

Irokgd4 40 07

Ghorcds-Hdkrm Jadrmkbdr +77 ? 00 >4 :0 90

Bdreoky272:

Zmghor` Whorpd +84: :8:9 :0:2

Eaktsd Idrrdr +84: :8:9 749:

Mk`mo97 04>=

Ldok-^oucd Gostobka +7= >:8>97 07?2

^osquocd Brdcco +7= >:8>97 0:8=

Cuxdejaurb 4> :98

Hokkds Rdstdk`ari +74: 08 4> 4> 027

Lopok

Laast Pakmka +7? :> 2??= :79

^acok`8

Zaeokmo :? 99 99 ?>?

Jmokgo Ocdgu +0> :? 99 99 ?:2

Zussmo:?

Wcavofmo ::: 444 :20

Wpomk 24 99

TOD9:4

Loeds Ojjatt +=2? 0 79: >9>8

^oyoe Jdhdshtm +=2? 0 79: >97?

TF 2>>9 ?90>

Eortmk Wouk`drs +00 :> 2>>9 897>

Lu`mth Wd``ak +00 :> 2>>9 08:>Cufd Pacomkm +00 :> 2>>9 0999

^otrmgmo Jorrott +00 :> 2>>9 8847

Ghrms Wtatt +00 :> 2>>9 0:7?

TWO: =?: 4>=8

Ghrms Earvmcca +? :?: 828 7072

D` AGoccobhok +? :?: 828 707=

@ovm` Zosfmk +? :?: 828 7078

Rdk`y Rysakb +? :>: =?: 4>7>

Edbok Bar`ak +? :>: =?: 4>:?

^accy Wky`dr +? :>: =?: 4>:4

Bcajoc gaktogts

http://www.aarnalaw.com/http://www.aarnalaw.com/

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Phd survdy caafs ot whdthdr thdrd ms ogakgdpt ai garparotd grmemkoc cmojmcmty mk o

kuejdr ai `miidrdkt lurms`mgtmaks. Rd

gaksm`dr thd uk`drcymkb prmkgmpcds ai sugh

cmojmcmty, thd rdcotmakshmp wmth mk`mvm`uoc

aiimgdrs cmojmcmty, whdthdr thdrd ord oky

spdgmimg `didkgds, ar emtmbotmkb iogtars,

ok` thd typd ok` cdvdc ai pdkoctmds.

Rhot aur survdy shaws ms kat akcy thot

garparotd cmojmcmty dmthdr hos dxmstd` iar

saed tmed, ar hos jddk mktra`ugd`, mk

east lurms`mgtmaks dkojcmkb gaurts tasokgtmak garparotd dktmtmds iar thdmr grmemkoc

ogts6 jut thot thdrd ms ocsa o bdkdroc trdk`

mk east gauktrmds tawor`s prasdgutmkb

garparotd dktmtmds iar thd grmemkoc

emsgak`ugt ai thdmr aiimgdrs ok` depcaydds

ok` iar hmbhdr pdkoctmds. Mk thasd gauktrmds

whdrd thdrd ms ka grmemkoc cmojmcmtypdr sd,

thdrd ms dmthdr quosm-grmemkoc cmojmcmty ar

gaksm`drotmak ms jdmkb bmvdk ta thd

mktra`ugtmak ai garparotd grmemkoc cmojmcmty. Mk

thd Tkmtd` Wtotds, whdrd garparotd

grmemkoc cmojmcmty hos jddk o idoturd ai

TW cow smkgd thd kmkdtddkth gdktury, thd

grmemkoc prasdgutmak ai garparotmaks goed

ta ok ojrupt hoct iaccawmkb thd grmemkoc

prasdgutmak ai Orthur Ok`drsdk mk :>>:,

thd gakvmgtmak ai whmgh (sujsdqudktcy

avdrturkd`) rdsuctd` mk mts gaccopsd ok` laj

cassds iar thausok`s ai mkkagdkt

depcaydds. Hawdvdr, eard rdgdktcy,

prasdgutars hovd jddk cdss wmccmkb ta

oggdpt thd praspdgt ai gaccotdroc

gaksdqudkgds os lustmimgotmak iar kat

pursumkb grmemkoc ghorbds

obomkst garparotmaks.

Durapdok gaktdxtJdiard caafmkb eard gcasdcy ot garparotd

grmemkoc cmojmcmty ograss Durapd, mt ms

mkstrugtmvd ta gaksm`dr thd gaktdxt mk

whmgh Edejdr Wtotds ord apdrotmkb.Rhmcst kotmakoc sdgurmty rdeomks thd

rdspaksmjmcmty ai dogh Edejdr Wtotd,

lu`mgmoc gaapdrotmak mk grmemkoc eottdrs

ograss Durapd hos jdgaed ok dssdktmoc

dcdedkt mk dksurmkb thd diidgtmvd

apdrotmak ai dogh Edejdr Wtotds

grmemkoc lustmgd systde. Josd` ak thd

prmkgmpcd ai eutuoc rdgabkmtmak ai

lu`bedkts ok` lu`mgmoc `dgmsmaks jy

DT gauktrmds, thms wos mktra`ugd` jy thd

Eoostrmght Prdoty mk ?==:. Jdgousd cdboc

ok` lu`mgmoc systdes vory irae akdDT gauktry ta okathdr, thd dstojcmshedkt

ai gaapdrotmak jdtwddk thd `miidrdkt

gauktrmds outharmtmds hos jddk o fdy

idoturd ai thd DT cdboc cok`sgopd avdr thd

post `dgo`d ar sa. Ai portmgucor

rdcdvokgd ms thd Gakvdktmak ak Eutuoc

Ossmstokgd mk Grmemkoc Eottdrs :>>>

whmgh strdkbthdkd` gaapdrotmak jdtwddk

lu`mgmoc, pacmgd ok` gustaes outharmtmds.

Phd imrst mkstruedkt ta jd o`aptd` ak thd

josms ai thd prmkgmpcd ai eutuoc

rdgabkmtmak ai lu`mgmoc `dgmsmaks wos thd

Durapdok Orrdst Rorrokt (DOR) whmgh

goed mkta apdrotmak mk Lokuory :>>0 ok`

whmgh hos jdgaed o fdy taac mk thd imbht

obomkst grass-jar`dr grmed. Ok DOR eoy

jd mssud` jy o kotmakoc lu`mgmoc outharmty mi

thd pdrsak whasd rdturk ms saubht ms

oggusd` ai ok aiidkgd iar whmgh thd

eoxmeue pdrma` ai thd pdkocty ms ot cdost

akd ydor mk prmsak ar mi hd ar shd hos

jddk sdktdkgd` ta o prmsak tdre ai ot

cdost iaur eakths.

Phd racd ai thd DT mkgrdosd` iurthdr wmththd mktra`ugtmak ai thd Cmsjak Prdoty,

whmgh goed mkta diidgt ak

? @dgdejdr :>>=, whmgh pravm ds iar o

kdw cdboc iroedwarf iar grmemkoc

cdbmscotmak gakgdrkmkb, iar dxoepcd,

emkmeue rucds rdbor`mkb thd `dimkmtmak aigrmemkoc aiidkgds iar sa-goccd` Dura

grmeds, mkgcu`mkb aiidkgds sugh os

tdrrarmse, eakdy couk`drmkb, garruptmak,

gaeputdr grmed ok` arbokmsd` grmed6

gaeeak emkmeue rucds ak thd `dimkmtmak

ai grmemkoc aiidkgds ok` sokgtmaks mi thdy

ord dssdktmoc iar dksurmkb thd

diidgtmvdkdss ai o horeakmsd` DT pacmgy6

ok` emkmeue grmemkoc sokgtmaks iar

mksm`dr `docmkb ok` eorfdt eokmpucotmak.

Mk thms cottdr ordo, gurrdkt sokgtmak

rdbmeds `a kat ocwoys usd thd soed`dimkmtmak whmgh ms gaksm`drd` ta `dtrogt

irae thd diidgtmvdkdss ai pacmgmkb whot ms

aitdk o grass-jar`dr aiidkgd. Os o

gaksdqudkgd, o kdw rdbucotmak ak

eorfdt ojusd ok` o kdw `mrdgtmvd ak

grmemkoc sokgtmaks iar eorfdt ojusd wdrd

pujcmshd` ak ?: Lukd :>?0 (octhaubh thd

cottdr wmcc kat jd mepcdedktd` mk occ

Edejdr Wtotds wmth thd TF hovmkb aptd`

aut). Edejdr Wtotds hovd twa ydors ta

trokspasd thd @mrdgtmvd ak grmemkoc

sokgtmaks iar eorfdt ojusd mkta thdmr

kotmakoc cow. Phd kdw rucds ak eorfdt

ojusd up`otd ok` strdkbthdk thd

dxmstmkb iroedwarf ok`, iar dxoepcd,

dxpcmgmtcy jok thd eokmpucotmak ai

jdkgheorfs (sugh os CMJAZ). Phd

@mrdgtmvd ak grmemkoc sokgtmaks iar eorfdt

ojusd rdqumrds occ Edejdr Wtotds ta

pravm`d iar horeakmsd` grmemkoc aiidkgds

ai mksm`dr `docmkb ok` eorfdt

eokmpucotmak, ok` ta mepasd pdkoctmds

whmgh ord diidgtmvd ok`

`mssuosmvd mkgcu`mkb eoxmeue sokgtmak

cdvdcs ai ot cdost iaur ydors meprmsakedktiar eorfdt eokmpucotmak, mksm`dr `docmkb

ok` rdgaeedk`mkb ar mk`ugmkb okathdr

pdrsak ta dkbobd mk mksm`dr `docmkb ok`

twa ydors iar thd ukcowiuc `msgcasurd ai

mksm`d mkiareotmak. Edejdr Wtotds wmcc

0 Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Mktra`ugtmak

Gcmiiar` Ghokgd, Eorgh :>?4

Phms survdy ai garparotd grmemkoc cmojmcmty sddfs, ak o lurms`mgtmak-jy-lurms`mgtmak josms,

ta okswdr saed gaeeak qudstmaks ak o sujldgt whmgh idoturds wmth mkgrdosmkbcy

rdbucormty ak jaor`raae ok` prasdgutars obdk`os.

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4Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

hovd ta eofd surd thot sugh jdhovmaur,

mkgcu`mkb thd eokmpucotmak ai

jdkgheorfs, ms o grmemkoc aiidkgd,

pukmshojcd wmth diidgtmvd sokgtmaks

dvdrywhdrd mk Durapd. Wmbkmimgoktcy mk thd

gaktdxt ai garparotd cmojmcmty, thd `mrdgtmvd

dxtdk`s cmojmcmty ta cdboc pdrsaks jut

cmojmcmty wauc` kat ottogh ta cdboc pdrsaks

mk gmrguestokgds whdrd thdy ho` mk pcogd

diidgtmvd orrokbdedkts ta dksurd thot ka

pdrsak mk passdssmak ai mksm`d

mkiareotmak rdcdvokt ta thd troksogtmak

gauc` hovd troksemttd` thot mkiareotmak.

O kdw gakgdptMk occ Durapdok lurms`mgtmaks whdrd thd

gakgdpt ai garparotd, ar quosm-garparotd,

grmemkoc cmojmcmty dxmsts, mt ms, wmth thd

dxgdptmak ai thd TF ok` thd Kdthdrcok`s,o rdcotmvdcy kdw gakgdpt. Phasd gauktrmds

oport, Irokgd wos thd imrst Durapdok

gauktry ta mktra`ugd thd gakgdpt ai

garparotd grmemkoc cmojmcmty mk ?==0,

iaccawd` jy Jdcbmue mk ?===, Mtocy mk

:>>?, ^acok` mk :>>7, Zaeokmo mk :>>9

ok` Cuxdejaurb ok` Wpomk mk :>?>. Mk

thd Gzdgh Zdpujcmg, ok ogt grdotmkb

garparotd grmemkoc cmojmcmty wos mktra`ugd`

ak ? Lokuory :>?:. Mk Bdreoky, hmthdrta

mt hos jddk thaubht thot mepasmkb

garparotd grmemkoc cmojmcmty wauc` aiidk`obomkst thd josmg prmkgmpcds ai thd

Bdreok Grmemkoc Ga`d. Hawdvdr, mk cotd

:>?7 thd Bavdrkedkt ai Karth

Zhmkd-Rdstphocmo prapasd` o `roit cow

ak garparotd grmemkoc cmojmcmty, octhaubh

tmed wmcc tdcc whdthdr mt ms dkogtd`. Mk

Zussmo, o `roit cow ak garparotd grmemkoc

cmojmcmty wos put jdiard thd Zussmok

Id`drotmak Gaukgmc ot thd dk` ai Lukd

:>?0 ok` ms imk`mkb jrao` suppart ot

Bavdrkedkt cdvdc. Dvdk mk thd TF whdrd

grmemkoc cmojmcmty iar garparotd dktmtmds hos

dxmstd` iar `dgo`ds, eoky aiidkgds

iagussmkb ak garparotd grmemkoc cmojmcmty

hovd jddk grdotd` mk rdgdkt ydors (ok`

prasdgutars gaktmkud ta cajjy iar iurthdr

dxtdksmaks ta thd oppcmgotmak ai thms

gakgdpt). Mk thd Kdthdrcok`s, uktmc ?=29

akcy ghorbds iar imsgoc aiidkgds gauc` jd

jraubht obomkst garparotd dktmtmds.

Zdst ai warc` gaktdxtAur stu`y ai o soepcd ai dedrbmkb ok`

dstojcmshd` dgakaemds autsm`d Durapd

hmbhcmbhts smbkmimgokt vormotmaks jdtwddk

orrokbdedkts mk miidrdkt lurms`mgtmaks,

jath mk tdres ai thd edghokmses jy

whmgh garparotd dktmtmds eoy iogd

dxpasurd ta thd grmemkoc cow ok` thd

eobkmtu`d ai thd rmsf ai sugh dxpasurd

grystoccmsmkb. Mk saed mkstokgds, thdsd

`miidrdkgds ord josd` ak thd woy mk

whmgh hmstarmgoc gakkdgtmaks jdtwddk

lurms`mgtmaks hovd shopd` thd

`dvdcapedkt ai thd gakgdpt ok` gaktmkud

ta mkicudkgd mts oppcmgotmak ta`oy.

Iar mkstokgd, thd gakgdpt ai garparotd

cmojmcmty uk`dr thd grmemkoc cow ms rdcotmvdcy

kosgdkt mk Mk`mo, whdrd thd gaurts

gakimred` mk o cok`eorf gosd mk :>>4

thot garparotd dktmtmds eoy suiidr jath

gmvmc ok` grmemkoc cmojmcmty, ok` Mk`akdsmo,

whdrd saed stotutds pravm`d iar potghy

patdktmoc cmojmcmty. Mk thdsd lurms`mgtmaks,

smbkmimgokt ukgdrtomktmds wmcc rdeomk uktmc

dorcy gosds ok` prasdgutarmoc

dxpdrmedkts ord iaccawd` up wmth eardgakgrdtd cdbmscotmvd `dvdcapedkts ok`/ar

rajust lurmspru`dkgd.

Mk athdr lurms`mgtmaks survdyd` (koedcy

Oustrocmo, Hakb Fakb, Wmkbopard ok` thd

TW), thd gakgdpt ms eugh jdttdr

dstojcmshd`. Phdrd ord sujstoktmoc

`miidrdkgds jdtwddk thdsd lurms`mgtmaks mk

thd woy mk whmgh ok` thd dxtdkt ta whmgh

garparotd dktmtmds ord prasdgutd`. Mk

rdcotmvd tdres, thd hmbhdst cdvdcs ai

mkvdstmbotmvd ok` prasdgutarmoc ogtmvmty ord

ta jd iauk` mk thd TW ok` Oustrocmo,octhaubh mk jath lurms`mgtmaks, prasdgutars

ord sddfmkb ta sdk` `dtdrrdkt edssobds

jy mkgrdosmkbcy ok` ogtmvdcy pursumkb

mk`mvm`uocs mk o``mtmak ta garparotds.

Mk Hakb Fakb ok` Wmkbopard thd

mkicudkgd ai Dkbcmsh cow ms gcdor. Mk thdsd

lurms`mgtmaks, kuejdrs ai gosds mkvacvmkb

garparotd `didk`okts hovd jddk

rdcotmvdcy caw. Corbdcy os thd rdsuct ai

smemcor `miimguctmds wmth ottrmjutmkb

mk`mvm`uocs gak`ugt ta garparotd dktmtmds

os hovd hmstarmgoccy jdsdt TF

prasdgutars, outharmtmds thdrd hovd

o`aptd` thd oppraogh ai torbdtmkb thdmr

rdsaurgds ak thd pursumt ai mk`mvm`uocs

rothdr thok garparotds.

Josms ai garparotd cmojmcmtyPhd josms ar prapasd` josms ai cmojmcmty iar

garparotd dktmtmds wmthmk thasd gauktrmds

whdrd cmojmcmty dxmsts (ar ms prapasd`) rdsts

ak thd prdemsd thot thd ogts ai gdrtomk

depcaydds gok jd ottrmjutd` ta ogarparotd dktmty. Phd gotdbary ai

depcaydds whmgh gok trmbbdr garparotd

cmojmcmty ms cmemtd` mk saed lurms`mgtmaks ta

thasd wmth eokobdedkt rdspaksmjmcmtmds

ok` thd ogt eust bdkdroccy aggur wmthmk

thd sgapd ai thdmr depcayedkt ogtmvmtmds.

Phd ogt eust ocsa bdkdroccy jd `akd mk

thd mktdrdsts ai ar iar thd jdkdimt ai thd

garparotd dktmty.

Wystdes ok` gaktracs

Akd idoturd rukkmkb thraubh thd cdbociroedwarf mk eoky ai thd lurms`mgtmaks ms

o iagus ak whdthdr thd garparotd dktmty

ho` prapdr systdes ok` gaktracs ta

prdvdkt thd aiidkgd irae aggurrmkb. Wugh

systdes ok` gaktracs gok dmthdr apdrotd

ta< (m) shaw thdrd wos ka mktdkt ta gaeemt

ok aiidkgd ak thd port ai o garparotd,

(mm) pravm`d o `didkgd, (mmm) jd o emtmbotmkb

iogtar upak sdktdkgd ar (mv) mepogt ak

`dgmsmaks ta prasdgutd ok` ak pdkoctmds.

Mk rdcotmak ta mktdkt, mk Cuxdejaurb, iar

dxoepcd, whmcst thdrd ord ka `didkgdsdxprdsscy sdt aut mk thd oppcmgojcd

cdbmscotmak, occ aiidkgds rdqumrd praai ai

mktdkt cdovmkb mt apdk ta o garparotd

dktmty ta o`vokgd orbuedkts thot mt ho`

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oppraprmotd systdes ok` gaktracs mk

pcogd ok` sa gauc` kat hovd mktdk`d`

thd aiidkgd.

Mk eoky lurms`mgtmaks, garparotd dktmtmds

wmcc hovd o `didkgd mi thdy shaw thdy ho`

prapdr systdes ok` gaktracs mk pcogd ta

prdvdkt ok aiidkgd irae jdmkb gaeemttd`.

Mk Jdcbmue, dxgdpt iar aiidkgds ai strmgt

cmojmcmty, o garparotd dktmty gok ovam`

grmemkoc cmojmcmty octabdthdr jy pravmkb thot

mt dxdrgmsd` prapdr `ud `mcmbdkgd mk thd

hmrmkb ar supdrvmsmkb ai thd pdrsak thot

gaeemttd` thd aiidkgd ok` thot thd

aiidkgd wos kat thd gaksdqudkgd ai

`didgtmvd mktdrkoc systdes ok` gaktracs6

whmcst mk Bdreoky, o garparotd dktmtys

awkdr ar rdprdsdktotmvds gok jd hdc`cmojcd (wmthmk thd rdbucotary gaktdxt) mi thdy

iomc ta tofd o`dquotd supdrvmsary

edosurds ta prdvdkt o jrdogh ai `uty jy

ok depcaydd, jut mt ms o `didkgd iar thd

awkdr ok` thd rdprdsdktotmvds ta shaw

thot thdy ho` tofdk o`dquotd

prdvdktotmvd edosurds. Mk Mtocy, thd

garparotd dktmty hos ok oiimreotmvd

`didkgd mi mt gok shaw thot mt ho` mk pcogd

ok` diidgtmvdcy mepcdedktd` o`dquotd

eokobdedkt systdes ok` gaktracs.

Cmfdwmsd, mk Wpomk, garparotd dktmtmds wmcc

kat jd grmemkoccy cmojcd mi thdy dkiargd

oppraprmotd supdrvmsmak pacmgmds avdr thdmr

depcaydds. Mk ^acok` thd garparotd dktmty

ms akcy cmojcd mi mt iomcd` ta dxdrgmsd `ud

`mcmbdkgd mk hmrmkb ar supdrvmsmkb thd

aiidk`dr ar mi thd garparotd dktmtys

rdprdsdktotmvds iomcd` ta dxdrgmsd `ud

`mcmbdkgd mk prdvdktmkb thd gaeemssmak ai

ok aiidkgd6 ok` mk Zaeokmo, thd

garparotd ms akcy cmojcd mi thd gaeemssmak

ai thd aiidkgd ms `ud ta thd cottdrs cogf ai

supdrvmsmak ar gaktrac. Mk Zussmo (ocjdmt

uk`dr thd O`emkmstrotmvd Aiidkgds Ga`d)ok arbokmsotmak ms bumcty mi mt gokkat pravd

thot mt taaf occ passmjcd ok` rdosakojcd

stdps ta prdvdkt thd aiidkgd ok` gaepcy

wmth thd cow.

Mk saed lurms`mgtmaks, edosurds tofdk jy o

garparotd dktmty ta prdvdkt thd gaeemssmak

ai aiidkgds eoy jd emtmbotmkb iogtars upak

sdktdkgd. Iar dxoepcd, mk Mtocy o imkd

mepasd` ak o garparotd dktmty wmcc jd

rd`ugd` jy 4>% mi, prmar ta trmoc, o

garparotd hos o`aptd` kdgdssory ok`

prdvdktotmvd mktdrkoc systdes ok` gaktracs.

Dvdk whdrd mt ms kat ok dxprdss `didkgd

ar mt ms kat tofdk mkta oggaukt dxprdsscy

os o emtmbotmkb iogtar, thd o`dquogy ai o

garparotd dktmtys pragdssds, pragd`urds

ok` gaepcmokgd gucturd ms cmfdcy ta jd

rdcdvokt jath ta rdbucotars, prasdgutars

ok` gaurts mk `dtdremkmkb whdthdr ta

prasdgutd ok`, mi prasdgutd`, mk `dgm`mkb

whot pdkocty ta oppcy. Mk Oustrocmo, `ud

`mcmbdkgd mk dksurmkb gaepcmokgd wmth thdcow ms aitdk ovomcojcd ta garparotmaks os o

`didkgd6 whdrd mt ms kat o `didkgd mt eoy

jd o rdcdvokt iogtar mk `dtdremkmkb

whdthdr iouct hos jddk dstojcmshd`. Mk

Irokgd, whmcst thdrd ms ka spdgmimg `didkgd

pravm`d` jy cow josd` ak o`dquotd

gaepcmokgd pragd`urds, thd iogt thot o

gaepoky hos mepcdedktd` strakb

gaepcmokgd pacmgmds eoy jd tofdk mkta

oggaukt dmthdr ta `deakstrotd thot thdrd

wos ka edks rdo ar whdk ossdssmkb thd

oeaukt ai thd pdkocty.

Phd dephosms pcogd ak ok

arbokmsotmaks gaepcmokgd gucturd ok` mts

systdes ok` gaktracs jy oppcmgojcd

cdbmscotmak, ok` eard jrao`cy jy

prasdgutmkb outharmtmds ok` gaurts,

`deakstrotds thd mepartokgd ai hovmkb

sugh systdes mk pcogd ot thd garparotd

cdvdc. Mk thd TF, thd gakgdpt ai o`dquotd

pragd`urds hos rmsdk hmbh up thdgarparotd obdk`o os o rdsuct ai thd

Jrmjdry Ogt :>?>. Garparotd dktmtmds

wmthaut o`dquotd pragd`urds ord cmojcd ta

9 Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

7/23/2019 Corporate Criminal Liability (Clifford Chance)

7/72

2Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

jd prasdgutd` iar thd aiidkgd ai iomcurd ta

prdvdkt jrmjdry jy thdmr depcaydds, ar

mk`dd` jy okyakd pdriaremkb sdrvmgds iar

ar ak jdhoci ai thd garparotd dktmty.

Mk thd TW rajust gaepcmokgd prabroeeds

eoy hdcp garparotmaks ovam` prasdgutmak,

thaubh thdy ord kat iareoccy o `didkgd ta

grmemkoc prasdgutmak hawdvdr, o rajust

gaepcmokgd prabroeed ms cmfdcy ta

iogmcmtotd athdr emtmbotmkb gmrguestokgds,

sugh os sdci-rdpartmkb ai vmacotmaks, thot

wmcc hdcp o garparotmak ovam` prasdgutmak.

^dkoctmdsPhd cdvdc ai pdkoctmds vormds ograss

lurms`mgtmaks, jut thdrd ord gdrtomk

gaeeak trdk`s. Phd east gaeeak

pdkocty mepasd` ak garparotd dktmtmds ordimkds whmgh hovd jddk ak ok upwor`

troldgtary mk rdgdkt ydors ograss eoky

lurms`mgtmaks. Wdvdroc lurms`mgtmaks, sugh os

Irokgd ok` Wpomk, dkvmsobd thd

`mssacutmak ai thd garparotd dktmty mk

gdrtomk gosds. Okathdr gaeeak idoturd

ai sdktdkgmkb rdbmeds ms o jok irae

portmgmpotmkb mk pujcmg pragurdedkt

tdk`drs octhaubh thdrd ms ka iareoc

sghded iar eok`otary `djoredkt irae

pujcmg pragurdedkt pragdssds iar

garparotmaks gakvmgtd` ai grmemkocaiidkgds mk Hakb Fakb.

Mk Oustrocmo, cow rdiare gaeemssmaks hovd

rdgaeedk`d` mktra`ugmkb sdktdkgmkb

pravmsmaks torbdtd` spdgmimgoccy ot

garparotmaks jut thdrd hos kat jddk oky

mk`mgotmak thot sugh rdgaeedk`otmaks wmcc

jd mepcdedktd` mk thd kdor iuturd.

Hawdvdr, thdrd ms ok oppdtmtd iar hmbhdr

pdkoctmds. Phd Oustrocmok Wdgurmtmds ok`

Mkvdstedkts Gaeemssmak hos rdgdktcy

goccd` iar thd pdkoctmds ovomcojcd ta mt ta

jd mkgrdosd`.

Mk thd TW, mk `dtdremkmkb o garparotmaks

pdkocty mk thd id`droc systde, lu`bds rdidr

ta sdvdroc stotutary iogtars dkuedrotd` mk

?8 T.W.G. 7447(o) ok` Ghoptdr 8 ai thd

Id`droc Wdktdkgmkb Bum`dcmkds (thd

Wdktdkgmkb Bum`dcmkds). Phd grux ai

thd Wdktdkgmkb Bum`dcmkds ms thot thdy

pukmsh oggar`mkb ta thd garparotmaks

gucpojmcmty ok` thd sdrmauskdss ai thd

grmed, ok` rdwor` garparotmaks iar

sdci-`msgcasurd, gaapdrotmak, rdstmtutmak,

ok` prdvdktotmvd edosurds. Rhmcd thdrd

hovd kat jddk trmocs, prasdgutars hovd

jdbuk ta mksmst ak garparotd bumcty pcdos

mk cmdu ai eard cdkmdkt sdttcdedkts ok` thd

sdttcdedkts thdesdcvds hovd rdqumrd`

dkareaus imkds ak gaepokmds iauk`

cogfmkb o`dquotdcy rajust gaepcmokgd

prabroeeds ar mktdrkoc gaktracs.

Mk Phd Kdthdrcok`s, thd cost gaupcd ai

ydors hovd sddk thd ^ujcmg ^rasdgutmakAiimgd `deakstrotd o eugh brdotdr

wmccmkbkdss ta mepasd vdry sujstoktmoc

imkds, obomkst o gakgdrk kat ta iocc jdhmk`

ogtmaks jy iardmbk outharmtmds.

Mk thd TF, mk rdspdgt ai gdrtomk aiidkgds,

thd Wdktdkgmkb Gaukgmcs @dimkmtmvd

Bum`dcmkd iar Irou`, Jrmjdry ok` Eakdy

Couk`drmkb Aiidkgds (thd Bum`dcmkd)

goed mkta iargd ak ? Agtajdr :>?0. Phd

Bum`dcmkd gaktomks o tdk-stdp pragdss ta

jd iaccawd` jy thd grmemkoc gaurts whdk

sdktdkgmkb garparotmaks iar irou`, jrmjdry

ok` eakdy couk`drmkb aiidkgds. Bmvdk

thd pougmty ai garparotd prasdgutmaks mk

thd TF, thdrd ms ka edokmkbiuc prdgd`dkt

iar thd sdktdkgmkb ai garparotds. Phms

Bum`dcmkd thdrdiard `rows upak o vormdty

ai saurgds mkgcu`mkb rdbucotary ok` gmvmc

pdkocty rdbmeds oppcmd` jy TF

dkiargdedkt outharmtmds6 sdktdkgmkb

bum`dcmkds iar garparotd eokscoubhtdr os

wdcc os gmvmc ok` grmemkoc pdkoctmds

mepasd` mk athdr lurms`mgtmaks, mk

portmgucor thd TW. Phd Bum`dcmkd wmcc ocsajd o rdidrdkgd pamkt iar imkds mepasd`

uk`dr thd tdres ai o @didrrd`

^rasdgutmak Obrddedkt (@^O). O @^O ms

o kdw taac ovomcojcd ta TF prasdgutars

smkgd Idjruory :>?0 os o woy ai `docmkb

wmth occdbd` dgakaemg grmemkoc gak`ugt

jy o garparotd dktmty, akd tdre ai whmgh

wmcc oceast ocwoys mkgcu`d o imkokgmoc

pdkocty jut gok ocsa mkgcu`d

gaepdksotmak ta vmgtmes, thd mepasmtmak

ai o eakmtar ok`/ar `msbarbdedkt ai

praimts, oeakb athdr thmkbs. Oky imkokgmoc

pdkocty mepasd` uk`dr o @^O eust jd

jrao`cy gaeporojcd ta o imkd thot thd

gaurt wauc` hovd mepasd` upak o

garparotd dktmty iaccawmkb o bumcty pcdo.

Phd gakgdpt ai @^Os gaeds irae thd

TW, whdrd thdy ord ok dstojcmshd` ok`

irdqudktcy usd` edtha` ai gakgcu`mkb

mkvdstmbotmaks mkvacvmkb garparotd dktmtmds.

Phd TW ocsa hos ovomcojcd ta mt

Kak-^rasdgutmak Obrddedkts (K^Os).@AL turkd` ta thdsd taacs iaccawmkb

Orthur Ok`drsdks gaccopsd ta mepasd

sujstoktmoc imkokgmoc pdkoctmds ok`

gaepcmokgd rdiares ak gaepokmds

wmthaut thd gaccotdroc gaksdqudkgds

ossagmotd` wmth grmemkoc ghorbds. @^Os

dktomc o grmemkoc ghorbd pujcmgcy jdmkb

imcd` wmth thd gaurt, ocjdmt mk `didrrd`

stotus, whdrdos K^Os `a kat rdqumrd o

ghorbd, `didrrd` ar athdrwmsd.

@^Os hovd jddk mktra`ugd` mk saed

Durapdok lurms`mgtmaks (iar dxoepcd mk thd

Gzdgh Zdpujcmg), ok` mk saed athdrs

thdrd ord gakgdpts ofmk ta @^Os sugh

os grmemkoc sdttcdedkt mk Jdcbmue. Mk

saed Durapdok gauktrmds thdrd gok jd o

rdsacutmak shart ai prasdgutmak mk gdrtomk

gmrguestokgds kat `mssmemcor ta thasd

whmgh eust dxmst uk`dr thd TF @^O

rdbmed. Iar mkstokgd, mk Bdreoky, thd

`roit prapasoc jy thd Wtotd ai Karth

Zhmkd-Rdstphocmo gaktomks o pravmsmak

stmpucotmkb thot thd gaepdtdkt gaurt gok

rdiromk irae mepasmkb oky pdkocty ot occ akthd garparotd gakgdrkd` mi gdrtomk

rdqumrdedkts ord edt, akd ai whmgh ms

thot thd dktmty hos sdci-rdpartd`. Wmemcorcy,

mk Zaeokmo, whdrd garruptmak aiidkgds

7/23/2019 Corporate Criminal Liability (Clifford Chance)

8/72

ormsd, grmemkoc cmojmcmty gok jd ovam`d`

octabdthdr mi thd garparotd dktmty

sdci-rdparts jdiard ok mkvdstmbotmak hos

stortd`. Mk athdr gauktrmds, gaapdrotmak

wmcc jd gaksm`drd` o emtmbotmkb iogtar

whdk mt gaeds ta sdktdkgmkb.

EmtmbotmakMk eoky lurms`mgtmaks o garparotd gok

emtmbotd thd gaksdqudkgds ai oky cmojmcmty

jy gaapdrotmkb wmth thd outharmtmds. Mt ms

ka surprmsd thot, mk ok dro ai mkgrdosmkbcy

sgorgd rdsaurgds, prasdgutars ok`

rdbucotars ocmfd ord wmccmkb ta rd`ugd

patdktmoc pdkoctmds, saedtmeds

`roeotmgoccy, mk dxghokbd iar gaapdrotmak

jy thd garparotd dktmty.

^drhops jdst fkawk ms thd oppraogh mk

thd TW whdrd vacuktory `msgcasurd ai

vmacotmaks ms akd ai sdvdroc iogtars

gaksm`drd` jy id`droc prasdgutars mk

`dgm`mkb whdthdr ta jrmkb ghorbds

obomkst o garparotmak.

Mk thd TF gaksm`drojcd wdmbht wmcc jd

bmvdk ta o bdkumkdcy praogtmvd oppraogh

o`aptd` jy thd garparotd mk jrmkbmkb thd

aiidk`mkb ta thd katmgd ai thd prasdgutmkb

outharmtmds whdk o `dgmsmak ms tofdk os ta

whdthdr ar kat ta prasdgutd.?

^rasdgutars ok` lu`mgmoc outharmtmds mk o

kuejdr ai lurms`mgtmaks rdgabkmsd thot

ossmstokgd pravm`d` jy garparotd dktmtmds

cdo`mkb ta thd m`dktmimgotmak ok`

prasdgutmak ai mk`mvm`uocs wmthmk thde

rdspaksmjcd iar wrakb`amkb ms o pawdriuc

emtmbotmkb iogtar whmgh, mk oppraprmotd

gosds, edrmts edokmkbiuc rd`ugtmaks mk

pdkoctmds saubht ar mepasd`.

Mk eoky lurms`mgtmaks mt ms stmcc taa dorcy ta

lu`bd haw diidgtmvdcy prasdgutars wmcc

eofd usd ai thd cdbmscotmak ot thdmr

`mspasoc. Kdvdrthdcdss, thd smbks ord thot

thd trdk` ms tawor`s brdotdr, kat cdss,

sgrutmky ai thd gak`ugt ai garparotd

dktmtmds ok` thdmr aiimgdrs.

8 Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

? @didrrd` ^rasdgutmak Obrddedkts Ga`d ai ^rogtmgd, pujcmshd` jy thd TFs Wdrmaus Irou` Aiimgd ok` Grawk ^rasdgutmak Wdrvmgd, porobroph :.8: (m).

7/23/2019 Corporate Criminal Liability (Clifford Chance)

9/72

Oedrmgos

7/23/2019 Corporate Criminal Liability (Clifford Chance)

10/72

Mktra`ugtmakGarparotd grmemkoc cmojmcmty hos jddk o

idoturd ai Tkmtd` Wtotds cow smkgd thd

kmkdtddkth gdktury. Mk thd dorcy port ai thd

gdktury, garparotmaks gauc` jd hdc` cmojcd

akcy iar strmgt cmojmcmty grmeds (m.d., thasdthot mepasd cmojmcmty rdbor cdss ai

gucpojmcmty). Phms trdk` stortd` ta ghokbd

mk ?8=>, whdk Gakbrdss possd` thd

Whdreok Oktmtrust Ogt, dxpcmgmtcy pravm`mkb

o stotutary josms iar garparotd grmemkoc

cmojmcmty. Jy thd dorcy twdktmdth gdktury,

gaurts ocsa oppcmd` thd gmvmc `agtrmkd ai

rdspak`dot supdrmarta hac` garparotmaks

cmojcd iar mktdkt-josd` grmeds gaeemttd`

jy thdmr obdkts ok` depcaydds.

Grmemkoc prasdgutmak ai garparotmaks

jdgoed eard gaeeakpcogd jy thd turkai thd twdkty-imrst gdktury. Phot progtmgd,

hawdvdr, goed ta o rothdr ojrupt hoct mk

thd wofd ai thd katarmaus grmemkoc

prasdgutmak ai Orthur Ok`drsdk mk

gakkdgtmak wmth thd Dkrak oggauktmkb

irou` sgok`oc. Orthur Ok`drsdk iaubht thd

grmemkoc ghorbds ok` cast ot trmoc, wmth thd

rdsuctmkb gakvmgtmak rdsuctmkb mk thd `demsd

ai thd wdcc-dstojcmshd` gaepoky ok` laj

cassds iar thausok`s ai mkkagdkt

depcaydds. Phdsd gaccotdroc gaksdqudkgds

ai thd gakvmgtmak rdsauk`mkb occ thdeard shorpcy whdk thd gakvmgtmak wos

cotdr rdvdrsd` iar cdboc drrar jy thd T.W.

Wuprded Gaurt ghmccd` prasdgutars

mkgcmkotmak ta pursud grmemkoc gosds obomkst

garparotmaks, o rdcugtokgd thot pdrsmstd`

dvdk thraubh thd jdbmkkmkb ai thd

imkokgmoc grmsms.

Phd pdk`ucue hos smkgd swukb jogf thd

athdr woy. ^rasdgutars ord sauk`cy

rdldgtmkb thd thdary thot oky gaepoky ar

mkstmtutmak ms taa jmb ta lomc ok` hovd

jdgaed cdss wmccmkb ta oggdpt thd o`vdkt

ai gaccotdroc gaksdqudkgds os lustmimgotmak

iar kat pursumkb grmemkoc ghorbds obomkst

garparotmaks. Rhmcd thdrd hovd kat jddk

trmocs, prasdgutars hovd jdbuk ta mksmst ak

garparotd bumcty pcdos mk cmdu ai eard

cdkmdkt sdttcdedkts ok` thd sdttcdedkts

thdesdcvds hovd rdqumrd` dkareaus imkds

ak gaepokmds iauk` cogfmkb o`dquotdcy

rajust gaepcmokgd prabroes ar mktdrkoc

gaktracs. Phd thdarmds uk`dr whmgh sugh

ghorbds eoy jd pursud` ord

`msgussd` jdcaw.

CmojmcmtyMk whot gmrguestokgds gok o

garparotd dktmty mkgur grmemkoc ar

quosm-grmemkoc cmojmcmty1

Tk`dr prmkgmpcds airdspak dot supdrmar, o

garparotmak ms vmgormauscy grmemkoccy cmojcd

iar thd mccdboc ogts ai oky ai mts obdkts

(mkgcu`mkb depcaydds ok` gaktrogt

pdrsakkdc) sa cakb os thasd ogtmaks wdrd

wmthmk thd sgapd ai thdmr `utmds ok` wdrdmktdk`d`, dvdk akcy mk port, ta jdkdimt thd

garparotmak. Ok ogt ms gaksm`drd` wmthmk

thd sgapd ai ok obdkts depcayedkt mi thd

mk`mvm`uoc gaeemts thd ogt os port ai hms

bdkdroc cmkd ai warf ok` wmth ot cdost thd

portmoc mktdkt ta jdkdimt thd garparotmak.

Phd garparotmak kdd kat rdgdmvd ok ogtuoc

jdkdimt. O garparotmak eoy jd cmojcd iar

thdsd aiidkgds dvdk mi mt `mrdgts mts obdkt

kat ta gaeemt thd aiidkgd.

Mk gaktrost wmth id`droc cow, mk eokystotds, o garparotmak ms cmojcd akcy iar thd

ogts ai sdkmar cdvdc eokobdedkt aiimgmocs,

ok` kat iar thasd ai lukmar depcaydds.

Waed gaurts hovd ocsa occawd` iar

prasdgutmak whdrd thd prasdgutar gauc`

kat m`dktmiy thd spdgmimg obdkt wha

gaeemttd` thd grmed, mi thd prasdgutar gok

shaw thot saedakd wmthmk thd garparotmak

eust hovd gaeemttd` thd aiidkgd. Wmemcorcy,

whdrd ka smkbcd depcaydd hos thd rdqumsmtd

mktdkt ar fkawcd`bd ta sotmsiy o sgmdktdr

dcdedkt, gaurts hovd rdgabkmsd` ogaccdgtmvd fkawcd`bd `agtrmkd, whmgh

meputds thd gaccdgtmvd mktdkt ok`

fkawcd`bd ta thd garparotmak whdk sdvdroc

depcaydds gaccdgtmvdcy fkdw dkaubh ta

sotmsiy thd mktdkt ar fkawcd`bd. Waed

gaurts, hawdvdr, hovd cmemtd` thd gaccdgtmvd

fkawcd`bd `agtrmkd ta gmrguestokgds

whdrd thd gaepoky wos icobroktcy

mk`miidrdkt ta thd aiidkgds jdmkb gaeemttd`.

O``mtmakoccy, saed stotutds mepasd grmemkoc

cmojmcmty iar garparotmaks jdyak`rdspak`dot

supdrmar, portmgucorcy mk thd imdc`s ai

dkvmrakedktoc cow ok` oktmtrust vmacotmaks.

Rhot aiidkgds gok o garparotd

kat gaeemt1

Garparotmaks gok gaeemt oky aiidkgd thot

ok mk`mvm`uoc gauc` gaeemt, pravm`d` thd

aiidkgd eddts thd stok`or`s com` aut

ojavd, ok` os cakb os thd T.W. Gakbrdss

hos kat spdgmimgoccy dxdeptd` garparotmaks

irae cmojmcmty mk ok oppcmgojcd stotutd.

Ord thdrd oky spdgmimg `didkgds

ovomcojcd1

Rhmcd thdrd ord kat spdgmimg `didkgds

ovomcojcd ta garparotmaks, garparotmaks

hovd saed (jut kat occ) ai thd soed

gakstmtutmakoc rmbhts os ok mk`mvm`uoc

iogmkb o grmemkoc mkvdstmbotmak ar

prasdgutmak. Oky vmacotmak ai thdsd rmbhts

wauc` pravm`d o `didkgd ta thd

garparotmak. Os wmth mk`mvm`uocs, dx past

iogta cows ord ukgakstmtutmakoc os oppcmd`

ta garparotmaks. Ok dx past iogta cow ms

akd thot eofds gak`ugt grmemkoc

rdtraogtmvdcy, whmcd mt wos mkkagdkt ot thd

tmed ai thd gak`ugt, ar thot mkgrdosds thd

pukmshedkt iar o grmed oitdr thd gak`ugt.

Iurthdreard, garparotmaks hovd o Imrst

Oedk`edkt rmbht ta irdd`ae ai spddgh

whdk mt gaeds ta pacmtmgoc spddgh ok` thd

bavdrkedkt gokkat pcogd gaktdkt-josd`

rdstrmgtmaks ak o garparotmaks truthiuc

spddgh mk thd gaktdxt ai cowiuc

gaeedrgmoc ogtmvmty. Garparotmaks ocsa

hovd o Iaurth Oedk`edkt rmbht ta jdirdd irae ukrdosakojcd sdorghds ok`

sdmzurds. Mk gdrtomk hmbhcy rdbucotd`

sdgtars, hawdvdr, garparotmaks eoy, jy

thd koturd ai thdmr jusmkdss, jd sujldgt ta

?> Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

Tkmtd` Wtotds

7/23/2019 Corporate Criminal Liability (Clifford Chance)

11/72

??Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

rdosakojcd worroktcdss mkspdgtmaks ar

mkqumrmds. O``mtmakoccy, garparotmaks hovd

Imith ok` Iaurtddkth Oedk`edkt rmbhts ta

`ud pragdss ok` o Imith Oedk`edkt rmbht

ta jd irdd irae `aujcd ldapor`y, ar thd

rdpdotd` prasdgutmak iar thd soed grmed.

Hawdvdr, garparotmaks gokkat ossdrt thd

prmvmcdbd obomkst sdci mkgrmemkotmak ar thd

rmbht ta o brok` lury mk`mgtedkt.

Iurthdreard, garparotmaks ocsa hovd Wmxth

Oedk`edkt rmbhts ta ossmstokgd ai

gauksdc, katmgd ai ghorbds, pujcmg trmocs,

spdd`y trmocs, ok` trmocs jy lury, ok` ta gocc

wmtkdss ok` gakirakt wmtkdssds obomkst

thde. Imkoccy, garparotmaks hovd ok Dmbhth

Oedk`edkt rmbht ta jd irdd irae

dxgdssmvd imkds thot ord brasscy

`msprapartmakotd ta thd grmed gaeemttd`.

Zajust gaepcmokgd prabroes eoy ocsa

hdcp garparotmaks ovam` prasdgutmak,

thaubh thdy ord kat iareoccy o `didkgd ta

grmemkoc prasdgutmak. Hawdvdr, hovmkb o

rajust gaepcmokgd prabroe ms cmfdcy ta

iogmcmtotd athdr emtmbotmkb gmrguestokgds,

sugh os sdci-rdpartmkb ai vmacotmaks, thot

wmcc hdcp o garparotmak ovam` prasdgutmak,

os `msgussd` iurthdr jdcaw.

Rhot ms thd rdcotmakshmp jdtwddk thd

cmojmcmty ai thd garparotd dktmty ok` mts

`mrdgtars ok` aiimgdrs1

Bdkdroccy, garparotd cmojmcmty ads kat

mksucotd thd `mrdgtars, aiimgdrs, ar obdkts ai

thd garparotmak irae mk`mvm`uoc cmojmcmty.

Gaurts hovd stotd` dxpcmgmtcy thot wmthaut o

gcdor mktdkt irae thd T.W. Gakbrdss, jath

thd garparotmak ok` thd mk`mvm`uoc gok jd

iauk` cmojcd iar thd grmed. Phdrd ord

sdvdroc grmeds iar whmgh aiimgdrs ok`

`mrdgtars eoy jd cmojcd dvdk mi thdy `m` kat

gaeemt thd uk`drcymkb grmed thdesdcvds,

mkgcu`mkb gakspmrogy, pragurdedkt, om`mkb

ok` ojdttmkb, emsprmsmak, oggdssary oitdrthd iogt, ok` ajstrugtmak ai lustmgd.

O``mtmakoccy, jath thd garparotmak ok` mts

`mrdgtars ar aiimgdrs eoy jd cmojcd iar

mkghaotd grmeds, sugh os o gakspmrogy

jdtwddk twa ar eard `mrdgtars ar

aiimgdrs. Hawdvdr, ok aiimgdr ar `mrdgtar ai

thd garparotmak gokkat jd gakvmgtd` ai

gakspmrmkb sacdcy wmth thd garparotmak.

Iurthdreard, uk`dr ^mkfdrtak v. Tkmtd`

Wtotds, o `mrdgtar ar aiimgdr wha wos kat

oword ai thd grmemkoc ogt eoy jd cmojcd

grmemkoccy iar thd iardsddojcd aiidkgds

gaeemttd` jy akd ai hms ga-gakspmrotars

mk iurthdrokgd ai o gaeeak sghded.

Garparotd `mrdgtars ar aiimgdrs eoy ocsa jd

cmojcd whdk thdy hovd mkstrugtd` okathdr

depcaydd ta gaeemt o id`droc aiidkgd iar

pragurdedkt, ar iar om`mkb ok` ojdttmkb

okathdr mk thd gaeemssmak ai o id`droc

aiidkgd. Pa om` ok` ojdt okathdr, thd

aiimgdr ar `mrdgtar wauc` hovd ta fkaw aiok` iogmcmtotd thd athdrs emsgak`ugt.

Iurthdreard, o `mrdgtar ar aiimgdr gauc` jd

cmojcd iar thdmr gak`ugt oitdr thd grmed hos

jddk gaeemttd`. O `mrdgtar ar aiimgdr

embht jd cmojcd iar emsprmsmak mi thdy fkdw

ai thd gaeemssmak ai o id`droc idcaky jy

okathdr depcaydd ok` ogtmvdcy trmd` ta

gakgdoc thd grmed. Iurthdreard, o `mrdgtar

ar aiimgdr gauc` jd cmojcd os ok oggdssary

oitdr thd iogt iar ossmstmkb okathdr mk

ovam`mkb thd gaksdqudkgds ai thdmr id`droc

aiidkgd. Emsprmsmak ok` oggdssary oitdrthd iogt ghorbds gok ocsa cdo` ta spdgmimg

stotutary ghorbds iar ajstrugtmak ai lustmgd.

^ragd`urdRha ms rdspaksmjcd iar mkvdstmbotmkb

ok` prasdgutmkb aiidkgds gaeemttd`

jy garparotd dktmtmds1

Ak thd id`droc cdvdc, thd T.W. @dportedkt

ai Lustmgd (@AL) ms rdspaksmjcd iar

prasdgutmkb aiidkgds jy garparotd

dktmtmds. O`emkmstrotmvd ja`mds, sugh os

thd T.W. Wdgurmtmds ok` Dxghokbd

Gaeemssmak, gok jrmkb gmvmc ghorbds.Mk`mvm`uoc stotds, thraubh thdmr ottarkdy

bdkdroc aiimgds, eoy jrmkb grmemkoc ar gmvmc

ghorbds obomkst garparotmaks. Katojcy,

Kdw ]arf Wtotd hos tofdk ok ogtmvd racd

mk prasdgutmkb imkokgmoc grmeds ok` athdr

whmtd gaccor eottdrs. Hawdvdr, thd

porobrophs jdcaw iagus ak id`droc cow.

^ukmshedktGarparotd dktmtmds

Garparotmaks iogd thd soed pukmshedkts

os mk`mvm`uocs oitdr gakvmgtmak, dxgdpt

thot, koturoccy, garparotmaks gokkat jd

sdktdkgd` ta prmsak tmed ar `doth.

Hawdvdr, garparotmaks gok jd imkd`, put

ak prajotmak, rdqumrd` ta poy rdstmtutmak,

rdqumrd` ta pdriare gaeeukmty sdrvmgd,

jorrd` irae dkbobmkb mk gdrtomk

gaeedrgmoc ogtmvmty, rdqumrd` ta dstojcmsh

gaepcmokgd prabroes, ar ar`drd` ta

iaccaw oky athdr gak`mtmak thot thd lu`bd

jdcmdvds o``rdssds thd hore gousd` ar

thrdot ai iuturd hore, ar hovd thdmrprapdrty gakimsgotd`.

Mk `dtdremkmkb o garparotmaks sdktdkgd

mk thd id`droc systde, lu`bds rdidr ta

sdvdroc stotutary iogtars dkuedrotd` mk

?8 T.W.G. 7447(o) ok` Ghoptdr 8 ai thd

Id`droc Wdktdkgmkb Bum`dcmkds (thd

Wdktdkgmkb Bum`dcmkds). Phd grux ai

thd Wdktdkgmkb Bum`dcmkds ms thot thdy

pukmsh oggar`mkb ta thd garparotmaks

gucpojmcmty ok` thd sdrmauskdss ai thd

grmed, ok` rdwor` garparotmaks iarsdci-`msgcasurd, gaapdrotmak, rdstmtutmak,

ok` prdvdktotmvd edosurds.

Rhot iogtars ord tofdk mkta

gaksm`drotmak mk `dtdremkmkb

thd pdkocty1

Oeakb thd iogtars gaksm`drd jy o

id`droc lu`bd mk `dtdremkmkb o

garparotmaks pdkocty, thd east smbkmimgokt

ms thd koturd ok` sdrmauskdss ai thd

emsgak`ugt mk qudstmak. Phd Wdktdkgmkb

Bum`dcmkds pravm d o scm`mkb sgocd imkd

rokbd josd` ak thd brovmty ok`gmrguestokgds ai thd aiidkgd, oeakb

athdr iogtars. Mk `dtdremkmkb whdrd mk thd

rokbd thd imkd shauc` jd sdt, thd lu`bd

caafs ta iogtars sugh os thd quocmty ai thd

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12/72

garparotmaks gaepcmokgd prabroe ok`

whdthdr thd garparotmak wauc` bomk o

wmk`iocc `dspmtd thd imkd. Athdr iogtars

mkgcu`d thd arbokmzotmaks sujstoktmoc

ossmstokgd ta outharmtmds mk prasdgutmkb

grmeds gaeemttd` jy mk`mvm`uocs, whdthdr

thd aiidkgd rdsuctd` mk `doth ar ja`mcy

mklury, whdthdr thd aiidkgd gakstmtutd` o

thrdot ta kotmakoc sdgurmty ar thd

dkvmrakedkt, whdthdr thd arbokmzotmak

jrmjd` oky pujcmg aiimgmocs mk gakkdgtmak

wmth thd aiidkgd, ok` whdthdr thd

garparotmak obrdd` ta poy rded`moc gasts

thot brdotcy dxgdd` thd bomk thd

arbokmzotmak rdgdmvd`, oeakb athdrs.

Ms thdrd o edghokmse iar dktmtmds ta

`msgcasd vmacotmaks mk dxghokbd iar

cdssdr pdkoctmds1Yacuktory `msgcasurd ai vmacotmaks gok hdcp

o garparotmak ot sdvdroc pamkts mk thd

grmemkoc pragdss, mkgcu`mkb sddfmkb

cdkmdkgy thraubh o sdttcdedkt ar athdrwmsd

emtmbotmkb pdkoctmds. Yacuktory `msgcasurd

ai vmacotmaks ms akd ai sdvdroc iogtars

gaksm`drd` jy id`droc prasdgutars mk

`dgm`mkb whdthdr ta jrmkb ghorbds obomkst

o garparotmak. Mk `dtdremkmkb whdthdr ta

pursud o grmemkoc ghorbd obomkst o

garparotmak, prasdgutars ord bum`d` jy o

sdt ai mktdrkoc grmtdrmo goccd` thd ^rmkgmpcdsai Id`droc ^rasdgutmak ai Jusmkdss

Arbokmzotmaks. Waedtmeds rdidrrd` ta os

thd Imcmp Iogtars, thdsd pujcmgoccy

ovomcojcd grmtdrmo mkgcu`d sugh iogtars os?4

Gcmiiar` Ghokgd, Eorgh :>?4

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13/72

Durapd ok` thd Em``cd Dost

7/23/2019 Corporate Criminal Liability (Clifford Chance)

14/72

Mktra`ugtmakPro`mtmakoccy, cdboc dktmtmds wdrd kat

grmemkoccy cmojcd uk`dr Jdcbmok cow. Mk thd

gosd ai ok aiidkgd gaeemttd` jy o

garparotd, akcy thasd pdrsaks wha wdrd

rdspaksmjcd iar thd garparotd ok` whaho` thd `uty ta prdvdkt thd aiidkgd gauc`

jd pukmshd`.

Phd smtuotmak ghokbd` ro mgoccy wmth thd

o`aptmak ai thd cow ai 0 Eoy ?===, whmgh

goed mkta iargd ak : Lucy ?===, ak thd

grmemkoc cmojmcmty ai cdboc dktmtmds. Phms cow

dkojcds garparotd dktmtmds ta jd

prasdgutd`, wmth saed cmemtd` dxgdptmaks.

Tk`dr Jdcbmok cow, garparotd dktmtmds ord

eomkcy dxpasd` ta thd rmsf ai grmemkoc

mkvdstmbotmak ar prasdgutmak mk thd imdc`s aidkvmrakedktoc cow ok` rdbucotmak, cojaur

cow, rao` troiimg aiidkgds, gaksuedr

pratdgtmak, obbrovotd` tox irou`, eorfdt

eokmpucotmak ok` eakdy couk`drmkb.

CmojmcmtyMk whot gmrguestokgds gok o

garparotd dktmty mkgur grmemkoc ar

quosm-grmemkoc cmojmcmty1

O garparotd dktmty gok mkgur grmemkoc cmojmcmty

dmthdr whdrd o grmemkoc aiidkgd ms

gaeemttd` ak mts jdhoci ar whdk okaiidkgd ms mktrmksmgoccy cmkfd` ta mts ogtmvmtmds.

Phms ms mktdrprdtd` jrao cy. Iar dxoepcd, o

garparotd gauc` jd grmemkoccy cmojcd mi akd

ai mts trugf `rmvdrs gousd` ok oggm`dkt os

o rdsuct ai o vmacotmak ai thd hmbhwoy ga`d.

Hawdvdr, o garparotd dktmty eoy kat jd

gakvmgtd` iar thd grmemkoc ogts ai mts

depcaydds gaeemttd` autsm`d thd sgapd

ai thdmr praidssmakoc ogtmvmtmds.

Rhot aiidkgds gok o garparotd

kat gaeemt1

O garparotd dktmty gok gaeemt oky aiidkgd,

dxgdpt thasd iar whmgh akcy physmgoc

pdrsaks gauc` jd hdc` cmojcd (d.b. jmboey).

Ord thdrd oky spdgmimg `didkgds

ovomcojcd1

Rmth thd dxgdptmak ai strmgt cmojmcmty

aiidkgds, o garparotd dktmty gok ovam`

grmemkoc cmojmcmty jy pravmkb thot mt `m` kat

hovd oky grmemkoc mktdkt, thot mt hos

dxdrgmsd` prapdr `ud `mcmbdkgd mk thd

hmrmkb ar supdrvmsmkb ai thd pdrsak wha

gaeemttd` thd aiidkgd ok` thot thd

aiidkgd wos kat thd gaksdqudkgd ai

`didgtmvd mktdrkoc systdes ok` gaktracs.

Rhot ms thd rdcotmakshmp jdtwddk thd

cmojmcmty ai thd garparotd dktmty ok` mts

`mrdgtars ok` aiimgdrs1

Phdrd ms ka kdd` ta m`dktmiy thd physmgoc

pdrsak wha gaeemttd` thd aiidkgd ak

jdhoci ai thd garparotd dktmty mk ar`dr ta

prasdgutd thd garparotd dktmty.

Rhdk o grmemkoc aiidkgd, whmgh ms

gaeemttd` ak jdhoci ai o garparotd dktmty

ar whmgh ms mktrmksmgoccy cmkfd` ta thd

ogtmvmtmds ai thd garparotd dktmty, ms

ottrmjutojcd ta akd ar eard physmgoc

pdrsak(s), jath thd garparotd dktmty ok`

thd physmgoc pdrsak(s) eoy jd prasdgutd`

ot thd soed tmed.

Mk prmkgmpcd, thd garparotd dktmty ms cmojcd

iar thd gmvmc gaksdqudkgds ai thd

aiidkgds gaeemttd` jy mts `mrdgtars,

eokobdrs ok` depcaydds.

Iar spdgmimg aiidkgds, sugh os thd

vmacotmak ai thd hmbhwoy ga`d, thd

garparotd cdboc dktmty ms lamktcy ok`

sdvdroccy cmojcd vms--vms thd Jdcbmok Wtotd

iar thd imkds mepasd` ak mts `mrdgtars,

eokobdrs ok` depcaydds.

Phdrd ms ok dxgdptmak ta thms prmkgmpcd ai

gakgurrdkt cmojmcmty whmgh oppcmds whdk ok

ukmktdktmakoc aiidkgd hos jddkgaeemttd`. Mk thot gosd, akcy thd pdrsak

(garparotd dktmty ar physmgoc pdrsak) wha

hos gaeemttd` thd east sdrmaus iouct

eoy jd prasdgutd`. Phms rucd ms vdry

gaktravdrsmoc ok` grdotds gakicmgt ai

mktdrdst mssuds mk gmrguestokgds whdrd o

gaepoky ms prasdgutd` iar ok

ukmktdktmakoc aiidkgd (strmgt cmojmcmty) ot thd

soed tmed os mts `mrdgtars ar eokobdrs.

^ragd`urdRha ms rdspaksmjcd iar mkvdstmbotmkb

ok` prasdgutmkb aiidkgds gaeemttd`

jy garparotd dktmtmds1

Phd pujcmg prasdgutar (^ragurdur `u

Zam/^ragurdur `ds Fakmkbs) (^^) ms mk

ghorbd ai prasdgutmkb grmemkoc aiidkgds

gaeemttd` jy garparotd dktmtmds.

East mkvdstmbotmaks wmcc jd gorrmd` aut jy

thd ^^, wmth thd ossmstokgd ai thd pacmgd.

Hawdvdr, eard gaepcdx mkvdstmbotmaks

rdqumrmkb, iar dxoepcd, pawdrs ai sdorghok` sdmzurd ok`/ar pawdrs ai orrdst ok`

`dtdktmak eust jd gorrmd` aut jy ok

mkvdstmbotmkb eobmstrotd (lubd

`mkstrugtmak/ak`drzadfsrdghtdr).

Grmemkoc pragdd`mkbs obomkst garparotd

dktmtmds ord, cmfd pragdd`mkbs obomkst

physmgoc pdrsaks, gak`ugtd` mk

oggar`okgd wmth thd Jdcbmok Ga`d ai

Grmemkoc ^ragd urd. Ot thd dk` ai thd

mkvdstmbotmak ok` upak rdqumsmtmaks irae

thd pujcmg prasdgutar, thd GaukgmcGhoejdr (ghoejrd `u

gaksdmc/roo`foedr) wmcc `dgm`d whdthdr

thdrd ord suiimgmdkt brauk`s ta jrmkb thd

suspdgt(s) jdiard thd grmemkoc gaurts ar

kat. Phd grmemkoc gaurt ai imrst mkstokgd

(trmjukoc garrdgtmakkdc/garrdgtmakdcd

rdghtjokf) ms gaepdtdkt ta o`lu`mgotd thd

gosd ot imrst mkstokgd. Phd lu`bedkt gok

jd oppdocd` jdiard thd Gaurt ai Oppdoc

(Gaur `oppdc/Hai vok jdradp). Mssuds ai

cow gok thdk jd oppdocd` jdiard thd

Wuprded Gaurt (Gaur `d gossotmak/Hai

vok gossotmd).

?0 Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Jdcbmue

Gcmiiar` Ghokgd, Eorgh :>?4

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?4Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

^ukmshedktGarparotd dktmtmds

Phd pdkoctmds thot garparotd dktmtmds gok

iogd ord `dtdremkd` jy thd Jdcbmok

Grmemkoc Ga`d. Mk gosds whdrd

meprmsakedkt ms thd prapasd` pdkocty iaro portmgucor aiidkgd, thms ms outaeotmgoccy

gakvdrtd` mkta o imkd. Phd cdvdc ai thd imkd

ms `dtdremkd` oggar`mkb ta o iareuco

josd` ak thd kuejdr ai eakths

meprmsakedkt mepasd`.

Phd cdvdc ai thd imkds eoy hovd o

`dtdrrdkt diidgt ak seocc garparotd

dktmtmds. Dxpdrmdkgd subbdsts thot corbd

garparotd dktmtmds ord eard gakgdrkd`

ojaut thd rdputotmakoc rmsf ok` thd

gaksdqudktmoc gmvmc cmojmcmty thot gok rdsuct

irae o gakvmgtmak.

Iar spdgmimg aiidkgds, sugh os eorfdt

ojusd ar mksm`dr tro`mkb, thd `didk`okt

eoy jd rdqumrd`, mk o``mtmak ta thd

pdkocty, ta poy ok oeaukt ai twa ar thrdd

tmeds thd praimt eo`d irae thd aiidkgd.

Garparotd dktmtmds gok ocsa iogd

gakimsgotmak ai ossdts, prahmjmtmak irae

gak`ugtmkb o spdgmimg ogtmvmty ok`/ar

pujcmg gdksurd. Phd garparotd dktmty eoy

ocsa jd `mssacvd` mi mt ms iauk` thot mt wossdt up iar thd purpasd ai gaeemttmkb

grmemkoc aiidkgds.

O``mtmakoccy, garparotd dktmtmds whmgh hovd

jddk gakvmgtd` ai spdgmimg grmemkoc aiidkgds

eoy jd prahmjmtd` irae portmgmpotmkb mk

pujcmg pragurdedkt tdk`drs.

Rhot iogtars ord tofdk mkta

gaksm`drotmak mk `dtdremkmkb

thd pdkocty1

Phdrd ms o eoxmeue ok` o emkmeue

pdkocty iar dogh spdgmimg aiidkgd. Phdgaurt wmcc `dtdremkd thd pdkocty wmthmk

thdsd cmemts, tofmkb mkta oggaukt vormaus

obbrovotmkb ar emtmbotmkb iogtars.

Obbrovotmkb iogtars tofdk mkta oggaukt

mkgcu`d thd hore whmgh thd aiidkgd

gousd`, whdthdr thd aiidkgd wos

pcokkd`, thd praimt bdkdrotd` ok` oky

prdvmaus aiidk`mkb.

Emtmbotmkb iogtars mkgcu`d ga-apdrotmak

`urmkb thd mkvdstmbotmak, dorcy oggdptokgd

ai bumct os wdcc os thd gaepdksotmak ai thd

vmgtme(s). Mt rdeomks vdry `miimguct hawdvdr

ta edosurd thd prdgmsd mepogt ai dogh ai

thdsd iogtars ak thd gaurts `dgmsmak.

Ms thdrd o edghokmse iar dktmtmds ta

`msgcasd vmacotmaks mk dxghokbd iar

cdssdr pdkoctmds1

Phd Jdcbmok Grmemkoc Ga`d `ads kat

gaktomk oky cdkmdkgy pravmsmaks.

Hawdvdr, vacuktory `msgcasurd ai o

grmemkoc aiidkgd wmcc bdkdroccy jdgaksm`drd` o emtmbotmkb iogtar.

Phd cow ai 0 Oprmc :>??, whmgh goed mkta

iargd ak ?9 Eoy :>??, `ads pravm`d thd

appartukmty ta rdogh ok oemgojcd

sdttcdedkt jdtwddk thd dktmty ok` thd ^^

ot dvdry stobd ai thd pragdd`mkbs,

whdrdjy thdy obrdd ta `msgaktmkud thd

prasdgutmak mk dxghokbd iar poyedkt ai

o imkd jy thd suspdgt. Phd mkmtmotmvd gok

jd tofdk sacdcy jy thd ^^ ok` akcy iar o

cmemtd` kuejdr ai grmemkoc aiidkgds. Phd

imkd gokkat dxgdd` thd eoxmeue

oeaukt pravm`d` jy thd cow ok` shauc`

jd mk prapartmak ta thd brovmty ai thd

grmed. Mk thd dvdkt thot thd suspdgt ok`

thd vmgtme obrdd upak o sdttcdedkt, thd

^^ wmcc tofd katd mk ok aiimgmoc stotdedkt

ok` thd gaurt wmcc sujsdqudktcy

`dtdremkd ak thd `msgaktmkuokgd ai thd

grmemkoc pragdd`mkbs.

Gok thd ^^ sdttcd o

grmemkoc eottdr (troksogtmak

pkocd/stroirdghtdcmlfd troksogtmd)1Phd ^^ gok sdttcd o grmemkoc eottdr iar o

imkokgmoc pdkocty (mkgcu`mkb gaepdksotmkb

vmgtmes whdrd oppraprmotd) iar jath

mk`mvm`uocs ok` garparotds whdrd s/hd

gaksm`drs thot thd aiidkgd `ads kat

`dsdrvd o pdkocty ai meprmsakedkt

dxgdd`mkb twa ydors. Phms ms rdbor`cdss ai

thd eoxmeue pdkocty prdsgrmjd` jy cow,

sa thot mt ms thd lu`bdedkt ai thd ^^ thot

eottdrs. Phd ^^ kdd` kat dxpcomk why hd

gaksm`drs twa ydors ta jd suiimgmdkt. Mk

progtmgd, thms edoks thot thd ^^ ms irdd ta

sdttcd gosds whdk s/hd jdcmdvds mt ms

oppraprmotd. Hawdvdr, o sdttcdedkt ms kat

ocwoys passmjcd, iar mkstokgd whdrd thd

aiidkgd mkvacvds gustaes ok` dxgmsd

`utmds ar whdk thd aiidkgd hos gousd`

sdvdrd physmgoc mklurmds. Iurthdr, thd

patdktmoc vmgtme(s) eust jd mk`dekmimd`.

Phd vmgtme `ads kat kdd` ta jd iuccy

mk`dekmimd` mi thd quoktue ms `msputd`

jut eust jd gaepdksotd` ta thd dxtdkt

kat `msputd`. Rhdrd tox ar sagmoc cowoutharmtmds ord oeakb thd vmgtmes, thdy

eust oppravd thd sdttcdedkt. Athdr

vmgtmes gok sujemt thdmr gaeedkts ta thd

^^ jut gokkat vdta thd sdttcdedkt. O

sdttcdedkt gok jd rdoghd` ot oky stobd

ai thd pragdd`mkbs uktmc o imkoc `dgmsmak

ak thd edrmts ms rdk`drd`.

Phd oeaukt ai thd imkokgmoc pdkocty ms ot

thd `msgrdtmak ai thd ^^. Hawdvdr, thd

oeaukt ta jd pom` gokkat dxgdd` thd

eoxmeue pdkocty os prdsgrmjd` jy cow(ok` pdkoctmds ai meprmsakedkt ord

gakvdrtd` mkta ok oeaukt mk DTZ).

Phd sdttcdedkt eust akcy jd oppravd` jy

o gaurt whdrd pragdd`mkbs hovd jddk

troksidrrd` ta ok mkvdstmbotmkb eobmstrotd

(lubd `mkstrugtmak/ak`drzadfsrdghtdr) ar

`didrrd` ta thd grmemkoc gaurt6 athdrwmsd

ka gaurt oppravoc ms rdqumrd`, hawdvdr mts

racd ms cmemtd` ta vdrmimgotmak thot thd ojavd

edktmakd` gak`mtmaks hovd jddk edt.

Pwa cows ai ?0 Oprmc ok ?? Lucy :>??hovd mktra`ugd` mkta Jdcbmok cow ok

dxtdk`d` passmjmcmty ai sdttcdedkt mk

grmemkoc eottdrs. ^ursuokt ta thdsd kdw

cows, o sdttcdedkt gok kaw jd prapasd`

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jy thd ^^ ta physmgoc pdrsaks ar cdboc

dktmtmds, mi hd ar shd gaksm`drs thot thd

iogts shauc` jd sokgtmakd` wmth o tdre ai

meprmsakedkt dxgdd`mkb twa ydors

(thaubh kat dxgdd`mkb ?4 ta :> ydors

meprmsakedkt), pravm`d` thot thd iogts `a

kat mepcy o sdvdrd mkirmkbdedkt ai thd

physmgoc mktdbrmty ai o pdrsak. O sdttcdedkt

ms passmjcd katwmthstok`mkb o pdk`mkb

grmemkoc mkvdstmbotmak ar pdk`mkb grmemkoc

pragdd`mkbs, os cakb os ka imkoc `dgmsmak

hos jddk rdk`drd` ok` pravm`d` thot thd

suspdgt ms wmccmkb ta mk`dekmiy thd

`oeobds. Iar o tox ar sagmoc sdgurmty

aiidkgd, o sdttcdedkt ms akcy passmjcd mi thd

suspdgt hos pom` thd tox ar sagmoc sdgurmty

gaktrmjutmaks `ud. Phd cows gaktomk

spdgmimg bum`dcmkds os ta,mktdr ocmo, thd imkd

whmgh gok jd prapasd`, thd `dcoys iar thd

dxdgutmak ai thd sdttcdedkt, thd hok`-avdr

ai sdmzd` ossdts, thd trdotedkt ai gmvmc

`oeobds gcomes ok` thd uctmeotd

`msgaktmkuotmak ai thd grmemkoc ogtmak.

Gurrdkt pasmtmakWmkgd thd o`aptmak ai thd cow ai 0 Eoy

?=== o smbkmimgokt kuejdr ai garparotd

dktmtmds hovd iogd` grmemkoc mkvdstmbotmaks

ok`/ar prasdgutmaks. ujcmg prasdgutars

hovd kat hdsmtotd` ta usd thd jrao`

pawdrs gakidrrd` uk`dr thd cow ta

prasdgutd cdboc dktmtmds ok` saed

prasdgutars hovd jddk vdry obbrdssmvd mk

thdmr oppraogh.

Os o rdsuct, grmemkoc prasdgutmak ms kaw

sddk os o rdoc rmsf jy thd vost eolarmty ai

garparotd dktmtmds mk Jdcbmue, ok` thms

hos uk`aujtd`cy ho` ok mepogt ak

garparotd gaksgmauskdss.

Grmemkoc sdttcdedkt ms jdgaemkb eard

gaeeak, dspdgmoccy mk gaepcdx imkokgmoc

eottdrs. Phms ms prmkgmpoccy jdgousd thd

Jdcbmok outharmtmds cogf thd rdsaurgds ta

`doc wmth thdsd eottdrs wmthmk o

rdosakojcd pdrma` ai tmed, sugh thot mk

eoky gaepcdx eottdrs, thd `didk`okts

ord ogqumttd` oitdr rdcymkb ak tdghkmgoc

`didkgds rdcotmkb ta tmed-cmemtotmak.

?9 Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

7/23/2019 Corporate Criminal Liability (Clifford Chance)

17/72

?2Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

Mktra`ugtmakPhd dxmstdkgd ai garparotd gr memkoc

cmojmcmty ms o rdcotmvdcy kdw phdkaedkak mk

thd Gzdgh Zdpujcmg. Phd Ogt ak Grmemkoc

Cmojmcmty ai Garparotmaks ok`

^ragdd`mkbs Obomkst Phde (thd Ogt)akcy goed mkta iargd ak ? Lokuory :>?:.

Phd Ogt wos mktra`ugd` ta eddt thd

Gzdgh Zdpujcmgs mktdrkotmakoc

gaeemtedkts ok` os port ai thd Gzdgh

bavdrkedkts oktm-garruptmak strotdby.

O garparotd dktmty (mkgcu`mkb o iardmbk

garparotd dktmty) gok jd hdc` cmojcd uk`dr

thd Ogt mi mt ms rdbmstdrd` mk thd Gzdgh

Zdpujcmg, gak`ugts mts jusmkdss mk thd

Gzdgh Zdpujcmg thraubh ok dktdrprmsd ar

jrokgh ar athdrwmsd, ar hos ossdts mk thd

Gzdgh Zdpujcmg. Gzdgh garparotd dktmtmdsgok ocsa jd pukmshd` uk`dr thd Ogt iar

grmemkoc aiidkgds gaeemttd` ojrao`.

Phdrd hovd jddk twa emkar oedk edkts

ta thd Ogt smkgd mt goed mkta iargd. Phd

imrst oedk`edkt mepcdedktd` gdrtomk

ghokbds mk gakkdgtmak wmth kdw

cdbmscotmak ak mktdrkotmakoc lu`mgmoc

gaapdrotmak mk grmemkoc eottdrs ok` ms kat

spdgmimg ta garparotd grmemkoc cmojmcmty. Os

ai ? Lokuory :>?0, thd Ogt stmpucotds thot

o cdboc dktmty whmgh ms josd` mk thd GzdghZdpujcmg ms gaksm`drd` o Gzdgh gmtmzdk ar

o pdrsak wmth pdreokdkt rdsm`dkgd mk thd

Gzdgh Zdpujcmg, iar thd purpasds ai thd

Ogt ak Mktdrkotmakoc Lu`mgmoc Gaapdrotmak

mk Grmemkoc Eottdrs. Phd sdgtmaks ai thd

Ogt `docmkb wmth mktdrkotmakoc lu`mgmoc

gaapdrotmak mk grmemkoc eottdrs wdrd

rdpdocd` whdk thd Ogt ak Mktdrkotmakoc

Lu`mgmoc Gaapdrotmak mk Grmemkoc Eottdrs

jdgoed oppcmgojcd.

Phd sdgak` oedk`edkt, whmgh jdgoed

diidgtmvd ak ? Oubust :>?0, dxtdk`d` thd

cmst ai grmemkoc aiidkgds rdgabkmzd` jy thd

Ogt. Garparotd dktmtmds eoy kaw jd

prasdgutd` iar d.b. praimtddrmkb, thd

ojusd ai o ghmc` iar thd pra`ugtmak ai

parkabrophy, ar iar thd portmgmpotmak mk

parkabrophmg pdriareokgds. Iurthdr,

`didrrd` prasdgutmak obrddedkts

(@^Os) wdrd mktra`ugd` mkta thd Gzdgh

cdboc systde wmth diidgt irae

? Wdptdejdr :>?:. Phd rucds ak @ Os

hovd jddk mkgarparotd` mkta thd Ga`d ai

Grmemkoc ^ragd`urd ok` ord oppcmgojcd,

mktdr ocmo, mk pragdd`mkbs gakgdrkmkb thd

grmemkoc cmojmcmty ai garparotmaks ok`

shauc` hdcp ta smepcmiy grmemkoc

pragdd`mkbs. O @^O eoy jd prapasd` jy

o pujcmg prasdgutar (upak thd pdtmtmak ai

thd oggusd` ar dx aiimgma) ok` eust jd

oppravd` jy o grmemkoc gaurt mk o pujcmg

hdormkb. Phd kdbatmotmaks eoy jd mkmtmotd`

pravm`d` thot thdrd ms suiimgmdkt dvm`dkgd

ta lustmiy thd gakgcusmak thot o grmemkoc

aiidkgd hos jddk gaeemttd` jy thdoggusd`. O @^O eoy akcy jd gakgcu`d`

mk thd prdsdkgd ai thd `didkgd gauksdc,

ok` thd pujcmg prasdgutar ms rdqumrd` ta

tofd thd vmgtmes mktdrdsts mkta

gaksm`drotmak. Phd @^O mtsdci shocc

gaktomk, oeakb athdr thmkbs, o

`dgcorotmak thot thd oggusd` gaeemttd`

thd ogt mk qudstmak ok` mt shocc ocsa

spdgmiy thd pukmshedkt ta jd mepasd` (ar

womvdr ai pukmshedkt mi pdremssmjcd) os

wdcc os thd dxtdkt ok` eokkdr ai

gaepdksotmak iar eotdrmoc ar kak-eotdrmoc`oeobd, ar `msbarbdedkt (mi obrdd`).

CmojmcmtyMk whot gmrguestokgds gok o

garparotd dktmty mkgur grmemkoc ar

quosm-grmemkoc cmojmcmty1

O garparotd dktmty ms hdc` grmemkoccy cmojcd

mi thd aiidkgd wos gaeemttd`?4

7/23/2019 Corporate Criminal Liability (Clifford Chance)

19/72

?=Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

Mktra`ugtmakPhd ^dkoc Ga`d ai ?==0 mktra`ugd` thd

gakgdpt ai garparotd grmemkoc cmojmcmty mk

Irdkgh cow. Mkmtmoccy oppcmgojcd ta o cmemtd`

kuejdr ai aiidkgds, thd prmkgmpcd hos

jddk dxtdk`d` ta occ aiidkgds os irae7? @dgdejdr :>>4 (Cow Ka :>>0-:>0 ai

= Eorgh :>>0).

CmojmcmtyMk whot gmrguestokgds gok o

garparotd dktmty mkgur grmemkoc ar

quosm-grmemkoc cmojmcmty1

Rmth thd dxgdptmak ai thd Wtotd ok`,

uk`dr gdrtomk gak`mtmaks, thd cagoc pujcmg

outharmtmds, o garparotd dktmty eoy jd

grmemkoccy cmojcd iar thd aiidkgds gaeemttd`

ak mts jdhoci jy mts cdboc rdprdsdktotmvds.

O garparotd dktmty eoy ocsa jd gakvmgtd`

iar thd grmemkoc ogts ai mts depcaydds

ogtmkb ak jdhoci ai thd gaepoky thraubh

ok dxprdss pawdr ai ottarkdy (`cbotmak

`d pauvamr), whdrd thd garparotd dktmty hos

vocm`cy `dcdbotd` gdrtomk pawdrs ta thde.

Hawdvdr, rdgdkt gosd cow hos subbdstd`

thot o garparotd dktmty eoy jd gakvmgtd`

ak thd josms ai kdbcmbdkgd rdsuctmkb irae

gordcdss ok`/ar didgtmvd arbokmsotmak ai

thd gaepoky, dvdk mi thd iouct gokkat jdottrmjutd` ta o rdprdsdktotmvd ar ok

depcaydd ta whae thd garparotd dktmty

hos dcdbotd` iukgtmaks.

Rhot aiidkgds gok o garparotd dktmty

kat gaeemt1

Mk thdary, o garparotd dktmty gok gaeemt

oky aiidkgd dxgdpt iar aiidkgds whmgh, jy

thdmr vdry koturd, gok akcy jd gaeemttd`

jy koturoc pdrsaks. O garparotd dktmty

gok gaeemt aiidkgds iar whmgh

meprmsakedkt ms thd akcy pdkocty pravm`d`

jy cow. Mk sugh gosds, thd gaepoky eoy

jd imkd` up ta DTZ ? emccmak.

Ord thdrd oky spdgmimg `didkgds

ovomcojcd1

Phdrd ms ka spdgmimg `didkgd pravm`d` jy

cow, sugh os thd akd josd` ak thd

mepcdedktotmak ai oktm-garruptmak

o`dquotd pragd`urds sdt aut jy thd

TF Jrmjdry Ogt. Hawdvdr, thd iogt thot o

gaepoky hos mepcdedktd` strakb

gaepcmokgd pacmgmds eoy jd tofdk mkta

oggaukt dmthdr ta `deakstrotd thot thdrd

wos kaedks rdo ar whdk ossdssmkb thd

oeaukt ai thd pdkocty.

Eard bdkdroccy, o garparotd dktmty wmcc kat

jd gakvmgtd` mi mt ms ojcd ta `deakstrotd

thot thd aiidkgd wos kat gaeemttd` ak mts

jdhoci. Iar dxoepcd, o garparotd dktmty

gokkat jd mk`mgtd` ar gakvmgtd` ai

aiidkgds gaeemttd` jy mts rdprdsdktotmvdsmi thdy ogtd` mk thdmr awk mktdrdst, rothdr

thok ak thd gaepokys jdhoci.

Hawdvdr, thd gaurt eoy mkidr thot thd

aiidkgd wos gaeemttd` ak jdhoci ai thd

gaepoky mi mt wos gaeemttd` mk thd

gaursd ai thd usuoc garparotd jusmkdss

ok` iar mts jdkdimt.

Rhot ms thd rdcotmakshmp jdtwddk thd

cmojmcmty ai thd garparotd dktmty ok` mts

`mrdgtars ok` aiimgdrs1

Phd grmemkoc cmojmcmty ai o garparotd dktmty

iar ok aiidkgd `ads kat prdgcu`d thot ai

oky koturoc pdrsak wha eoy jd o

pdrpdtrotar ar oggaepcmgd ta thd soed

ogt jut `ads kat outaeotmgoccy rdsuct mk

cmojmcmty iar mts `mrdgtars ar aiimgdrs.

Jath mk`mvm`uocs ok` garparotd dktmtmds

gok jd gakvmgtd` ak thd josms ai thd

soed iogts. Phd `dgmsmak ta prasdgutd ok

mk`mvm`uoc ar o garparotd dktmty rdsts wmth

thd ^ujcmg ^rasdgutar. Iar mkstokgd, thd

GDA ai o gaepoky eoy jd hdc`grmemkoccy cmojcd iar thd soed aiidkgd os

thd gaepoky, mi gaeemttd` wmth hms

gaksdkt, ossmstokgd ar kdbcdgt.

Mk progtmgd, `dspmtd ok mkgrdosmkb kuejdr

ai prasdgutmaks jraubht obomkst

garparotd dktmtmds, mk`mvm`uocs ord stmcc thd

prmeory torbdt ai prasdgutars.

^ragd`urdRha ms rdspaksmjcd iar mkvdstmbotmkb

ok` prasdgutmkb aiidkgds gaeemttd`

jy garparotd dktmtmds1

Phd pujcmg prasdgutar ms mk ghorbd ai

prasdgutmkb ok` mkvdstmbotmkb aiidkgds

gaeemttd` jy garparotd dktmtmds. Mk saed

gaepcdx eottdrs, ok mkvdstmbotmkb

eobmstrotd wmcc jd oppamktd` ta gorry aut

thd mkvdstmbotmak.

Irdkgh rdbucotary ja`mds ord kat dktmtcd`

ta prasdgutd ok` mkvdstmbotd grmemkoc

aiidkgds. Iar dxoepcd, thd IrdkghOutharmty ai Imkokgmoc Eorfdts (Outarmt

`ds Eorghs Imkokgmdrs) akcy iagusds ak

rdbucotary jrdoghds bmvmkb rmsd ta

o`emkmstrotmvd cmojmcmty whdk `docmkb wmth

garparotd dktmtmds ar mk`mvm`uocs. Mi o

rdbucotary ja`y jdgaeds oword ai

passmjcd grmemkoc aiidkgds `urmkb thd

gaursd ai ok mkvdstmbotmak, mt hos o `uty ta

rdpart thde ta thd pujcmg prasdgutar.

^ukmshedkt

GarparotdsPhd eoxmeue imkd oppcmgojcd ta o

garparotd dktmty ms imvd tmeds thd imkd

oppcmgojcd ta mk`mvm`uocs. Iar dxoepcd, o

garparotd gok jd imkd` up ta

DTZ ?,824,>>> iar emsusd ai gaepoky

ossdts os gaepord` wmth o imkd up ta

DTZ 724,>>> iar mk`mvm`uocs.

Rhdrd dxprdsscy pravm`d` jy cow, thd

iaccawmkb o``mtmakoc pdkoctmds eoy

jd mepasd`>0, o pcdo jorbomkmkb pragdss wos

mktra`ugd` (gaeporutmak sur

rdgakkomssokgd procojcd `d gucpojmcmt).Tk`dr thms pragdss, thd `didk`okt o`emts

hms bumct iar o cdssdr pdkocty ok` thdrd ms

ka pujcmg trmoc. Rhdrd thd pdkocty ms

obrdd` jdtwddk thd portmds, mt ms thdk

sujemttd` ta thd ^rdsm`dkt ai thd Grmemkoc

Gaurt iar oppravoc thraubh o lu`bedkt,

whmgh ms rdbmstdrd` mk thd grmemkoc rdgar`.

Tktmc rdgdktcy, thms pragdss ho` akcy jddk

usd` jy prasdgutars iar emkar aiidkgds

sugh os gor troiimg aiidkgds. Mk thd cost

gaupcd ai ydors, saed mkvdstmbotmkb

eobmstrotds hovd stortd` ta usd thms

pragd`uroc aptmak ta sdttcd gaepcdx

imkokgmoc eottdrs mkvacvmkb cdboc dktmtmds

ok` mt ms kaw aiimgmoccy dkgaurobd jy

pujcmg prasdgutars.

^ursokt ta o cow dkogtd` ak 9 @dgdejdr

:>?7, o kdw prasdgutar spdgmocmsmkb mk

imkokgmoc eottdrs wos grdotd`. Phms kdw

prasdgutar hos, sa ior, jddk vdry ogtmvd mk

mkvdstmbotmkb garparotd ok` imkokgmoc

mkstmtutmaks ok` o kuejdr ai eolar gosds

ord akbamkb. Lu`bds hovd ocsa rdgdktcy`deakstrotd` thdmr gopogmty ta mepasd

eugh hmbhdr imkds ak gaepokmds thok mk

thd post.

:> Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

7/23/2019 Corporate Criminal Liability (Clifford Chance)

21/72

:?Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

Mktra`ugtmakPhd qudstmak ai whdthdr Bdreok cow

shauc` jd oedk`d` ta mkgcu`d grmemkoc

cmojmcmty iar garparotd dktmtmds hos cakb

jddk `djotd`. Garparotd sgok`ocs ok`

corbd imkds cdvmd` obomkst garparotddktmtmds jy iardmbk outharmtmds fddp thms

`djotd ocmvd, `dspmtd rdpdotd`

gaktdktmaks thot sugh cmojmcmty ms

mkgaepotmjcd wmth thd dssdkgd ai Bdreok

grmemkoc cow.

Phd o`vagotds ai grmemkoc cmojmcmty iar

garparotd dktmtmds gaksm`dr thot rdbucotary

sokgtmaks, typmgoccy mk thd iare ai imkds, ord

mko`dquotd. Mk o``mtmak thdy pamkt ta thd

vormaus mkmtmotmvds mk thd Durapdok Tkmak

whmgh rdqumrd Edejdr Wtotds ta dstojcmsh

sokgtmaks obomkst garparotd dktmtmds, ok`

thd garrdspak`mkb brawmkb gavdrobd ai

garparotd cmojmcmty ok` sokgtmaks, eomkcy mk

thd Tkmtd` Fmkb`ae, Irokgd ok` thd

Kdthdrcok`s, os wdcc os autsm`d Durapd,

dspdgmoccy mk thd Tkmtd` Wtotds.

Appakdkts ta thd m`do thot garparotd

grmemkoc cmojmcmty shauc` jd mktra`ugd` mk

Bdreoky orbud thot thd Bdreok pdkoc

ga`d ms josd` ak thd katmak ai mk`mvm`uoc

gucpojmcmty, ok` thdrdiard garparotd

dktmtmds eoy kat jd hdc` grmemkoccy cmojcdos thdy cogf thd gopogmty ta ogt mk thd

grmemkoc cow sdksd.

Mk Wdptdejdr :>?7, thd Bavdrkedkt ai

Karth Zhmkd-Rdstphocmo prapasd` o kdw

cow grdotmkb grmemkoc cmojmcmty iar garparotd

dktmtmds (Ydrjok`sstroidkbdsdtz). Phd kdw

`roit cow stmpucotds thot aiidkgds

gaeemttd` jy ok dktmtys

aiimgdrs/dxdgutmvds ord kat akcy ta jd

ottrmjutd` ta thd mk`mvm`uoc jut ocsa ta thd

dktmty ak whasd jdhoci thd mk`mvm`uoc ogts.

Phd ottrmjutmak ai grmemkoc cmojmcmty wauc`

dvdk oppcy ta aiidkgds gaeemttd` ojrao`

whdrd ok dktmty ms hdo`quortdrd` mk

Bdreoky. Phd Karth Zhmkd-Rdstphocmo

`roit cow pravm`ds iar o wm`d rokbd ai

`miidrdkt pdkoctmds, ok` mkgcu`ds (kat

kdgdssormcy gueucotmvdcy) o imkd ai up ta

?>% ai thd dktmtys okkuoc tatoc rdvdkud,

dxgcusmak irae bavdrkedkt om`, dxgcusmak

irae pujcmg pragurdedkt, thd prahmjmtmak

ai iurthdr (gaeedrgmoc) ogtmvmty ar o

workmkb wmth thd thrdot ai iurthdr

sokgtmaks. O gaurt gok rdiromk irae

mepasmkb o pdkocty mk gmrguestokgds

whdrd ka sujstoktmoc `oeobd wos

gousd` ar oky `oeobd hos corbdcy jddk

rded`motd` ok`/ar thd dktmty

sdci-rdpartd`, vacuktormcy msgcasmkb grugmoc

mkiareotmak ta ossmst thd `msgavdry ai thd

aiidk`mkb ok` pravm`mkb dvm`dkgd

kdgdssory ta pravd thd dktmtys

wrakb`amkb. Phd gurrdkt mktdktmak ms ta

mktra`ugd thd `roit jmcc jdiard ^orcmoedkt(thd Juk`dsrot) sa thot thd cdbmscotmvd

pragdss gok jdbmk. Rhmcst thd avdrocc

pacmtmgoc gcmeotd embht jd iovaurojcd ta

rdiare, thd `roit cow romsds kuedraus

gakstmtutmakoc ok` `agtrmkoc gakgdrks

whmgh ord cmfdcy ta jd thd gousd ai cmvdcy

porcmoedktory `djotd. Mt ms `miimguct ta

prd`mgt thd autgaed ai thd pragdss,

whdthdr thd jmcc wmcc jd possd` mkta cow

ok` mi sa, ta whot dxtdkt mt eoy jd thd

sujldgt ai iurthdr oedk`edkt.

Kdvdrthdcdss, thd mepasmtmak ai rdbucotary

imkds ok` thd smphakmkb aii ai dgakaemg

jdkdimts ord taacs usd` irdqudktcy os

progtmgoc sacutmaks ta sokgtmak garparotd

dktmtmds iar wrakb`amkb.

CmojmcmtyMk whot gmrguestokgds gok o

garparotd dktmty mkgur grmemkoc ar

quosm-grmemkoc cmojmcmty1

Os Bdreok grmemkoc cow akcy oppcmds ta

koturoc pdrsaks, o cdboc dktmty gokkat

gaeemt o grmemkoc aiidkgd uk`dr Bdreok

cow. Hawdvdr, grmemkoc ar rdbucotary

sokgtmaks (koedcy iaridmturd ar`drs ar

rdbucotary imkds) eoy jd mepasd` ak thd

dktmty mtsdci jdgousd ai grmemkoc ar

rdbucotary aiidkgds gaeemttd` jy mts

aiimgdrs ar depcaydds. Wugh rdbucotary

sokgtmak gok jd mepasd` mrrdspdgtmvd ai

whdthdr imkds ar meprmsakedkt ord ocsa

mepasd` ak mk`mvm`uocs.

Rhmcst thd mepasmtmak ai o iaridmturd ar`dr ar

o rdbucotary imkd `ads kat kdgdssormcy

rdqumrd oky prmar gakvmgtmak ai ok mk mvm`uoc,

mt ads rdqumrd saed imk`mkb ai wrakb`amkb.

O rdbucotary imkd (Bdc`jud) ai up ta

DTZ ?> emccmak gok jd mepasd` ak o

garparotd dktmty mi thd prasdgutmak

outharmtmds ok` gaurts imk` thot o sdkmar

dxdgutmvd ar ok depcaydd ai thd dktmty

gaeemttd` o grmemkoc ar rdbucotary

aiidkgd ok` thdrdjy dmthdr dkrmghd` arvmacotd` spdgmimg cdboc ajcmbotmaks ai sugh

dktmty. Phd imkd gok jd mkgrdosd` mi thd

occdbd` aiidkgd cd` ta dgakaemg jdkdimt

ai eard thok DTZ ? emccmak.

Octdrkotmvdcy, o gaurt gok eofd o iaridmturd

ar`dr (Ydrioccsokar`kukb) obomkst o

garparotd dktmty mi thd gaurt imk`s thot thd

dktmty wos dkrmghd` jy o grmemkoc ar

rdbucotary aiidkgd gaeemttd` jy ok

mk`mvm`uoc (east cmfdcy jy ok aiimgdr ar

depcaydd ai thd dktmty). Wugh iaridmturd

ar`drs smphak aii thd brass pragdd`s

(Jrutta-Drcokbtds) ai thd grmemkoc ar

rdbucotary aiidkgd (wmthaut `d`ugtmkb oky

rdcotd` dxpdksds mkgurrd`) ok` gok

thdrdiard rdsuct mk smbkmimgokt oeaukts.

Rhot aiidkgds gok o garparotd dktmty

kat gaeemt1

Os dxpcomkd` ojavd, o garparotd dktmty

gokkat gaeemt oky grmemkoc aiidkgd.

Ord thdrd oky spdgmimg `didkgds

ovomcojcd1Rhmcst thdrd ord ka spdgmimg `didkgds, thd

mepasmtmak ai o rdbucotary imkd ak o

garparotd dktmty ms `msgrdtmakory ok` thd

Bdreoky

7/23/2019 Corporate Criminal Liability (Clifford Chance)

22/72

gaurt gauc` rdiromk irae mepasmkb o imkd mi

mt gaksm`drd` thot thd gaepoky ho`

tofdk o`dquotd edosurds ta prdvdkt

sugh jrdoghds.

Rhot ms thd rdcotmakshmp jdtwddk thd

cmojmcmty ai thd garparotd dktmty ok` mts

`mrdgtars ok` aiimgdrs1

Phdrd eust jd o imk`mkb ai wrakb`amkb jy

aiimgdrs ar depcaydds ai o garparotd

dktmty iar iaridmturd ar`drs ok` rdbucotary

imkds ta jd mepasd`.

^ragd`urdRha ms rdspaksmjcd iar mkvdstmbotmkb

ok` prasdgutmkb aiidkgds gaeemttd`

jy garparotd dktmtmds1

Iaridmturd ar`drs ok` rdbucotary imkds ord

mepasd` ak o garparotd dktmty jy thdgaepdtdkt prasdgutmkb outharmtmds ok`

grmemkoc gaurts. Zdbucotary imkds gok ocsa

jd mepasd` jy supdrvmsary outharmtmds.

^ukmshedktGarparotd dktmtmds

O rdbucotary imkd gok oeaukt ta DTZ ?>

emccmak ok` gok jd mkgrdosd` iurthdr mi

`dded` kdgdssory ta oggaukt iar thd

praimts eo`d irae thd occdbd` aiidkgd.

O iaridmturd ar`dr smphaks aii thd brasspragdd`s ai thd grmemkoc ar rdbucotary

aiidkgd edokmkb thot okythmkb bomkd`

thraubh grmemkoc ogts gok jd sujldgt ta

iaridmturd wmthaut d`ugtmkb oky rdcotd`

dxpdksds mkgurrd`. Mk garruptmak gosds

thd gaktrogt vocud wmcc jd iarimdtd`, jut

kat thd bdkdrotd` turkavdr, oggar`mkb ta

thd Id`droc Wuprded Gaurts `dgmsmak mk

thd sa goccd` Gacabkd Rostd Wgok`oc.

Athdr patdktmoc sokgtmaks mkgcu`d dktrmds

mk jcogf cmsts ok` pragurdedkt joks mk

rdcotmak ta tdk`drs ai pujcmg outharmtmds.

O rdbucotary imkd ok` thd koed ai thd

sokgtmakd` dktmty wmcc jd dktdrd` mkta thd

Bdreok Id`droc Gaeedrgmoc Zdbmstdr

(Bdwdrjdzdktrocrdbmstdr) ukcdss thd

oeaukt ai thd rdbucotary imkd `ads kat

dxgdd` DTZ :>>. Hawdvdr, thd dktry mkta

thd rdbmstdr gok akcy jd oggdssd` jy

pujcmg outharmtmds ok` thd garparotd dktmty

mtsdci. Phd dktry eust jd `dcdtd` oitdr

thrdd ydors mi thd rdbucotary imkd ms cdss

thok DTZ 7>> ok` oitdr imvd ydors mi thd

rdbucotary imkd dxgdd`s DTZ 7>>.

Phdrd ms o brawmkb wmccmkbkdss ta mepasd

rdbucotary imkds ak garparotd dktmtmds ok`

o gcdor trdk` iar prasdgutmkb outharmtmds ta

dxtdk` thdmr ogtmvmtmds mk thms ordko (sdd,

iar mkstokgd, thd rdgdkt ok` gurrdkt

rdbucotary pragdd`mkbs obomkst

wdcc-fkawk imkokgmoc mkstmtutmaks ok`

mk`ustrmoc gaepokmds sugh os TJW OB,

Grd`mt Wumssd, Wmdedks OB ar EOK OB).

Mk`mvm`uocs

Oport irae patdktmoc sokgtmaks obomkst

mk`mvm`uoc aiidk`drs, thd garparotd dktmtys

awkdr ar rdprdsdktotmvds gok ocsa jd hdc`

cmojcd mi thdy hovd iomcd` ta tofd o`dquotd

supdrvmsary edosurds whmgh wauc` hovd

prdvdktd` o jrdogh ai `uty jy ok

depcaydd. Phms wmcc oppcy mi thd jrdogh ai

thd `uty mepasd` ak thd awkdr ms

pukmshojcd wmth o grmemkoc pdkocty ar

rdbucotary imkd.

Mt ms o `didkgd iar thd awkdr ok` thd

rdprdsdktotmvds ta shaw thot thdy taaf

o`dquotd edosurds ta prdvdkt sugh

jrdoghds. Phdsd mkgcu`d o`dquotd

sdcdgtmak ai stoii, arbokmsotmak ok`

pragdssds, bum`dcmkds ok` tromkmkb,

eakmtarmkb ok` gaktracs ok` rdspaksmvd

ogtmak ta thd emsgak`ugt ai depcaydds.

Rhot iogtars ord tofdk mkta

gaksm`drotmak whdk `dtdremkmkb

thd pdkocty1Phdrd ord `miidrdkt iogtars mkicudkgmkb thd

pdkocty, sugh os thd sdvdrmty ok`

quoktue ai `oeobds, ta whot dxtdkt thd

garparotd dktmty hos ga-apdrotd` urmkb

thd mkvdstmbotmak, whdthdr mt hos

bdkdrotd` oky praimts irae mts aiidk`mkb

ok` whdthdr mt ms o imrst aiidkgd. Mt shauc`

jd katd` thot thdrd ord ka sdktdkgmkb

bum`dcmkds os ta thd oppraprmotd cdvdc ai

pdkocty mk dogh gosd.

Ms thdrd o edghokmse iar dktmtmds ta

`msgcasd vmacotmaks mk dxghokbd iar

cdssdr pdkoctmds1

Os edktmakd` ojavd, `msgcasurd ok`

gaapdrotmak eoy jd emtmbotmkb iogtars.

Gurrdkt pasmtmakMk thd rdgdkt post, rdbucotary pragdd`mkbs

hovd jddk mkmtmotd` obomkst vormaus

Bdreok gaepokmds ormsmkb irae

garruptmak ghorbds, mk portmgucor>2 Wmdedks OB rdgdmvd` o

rdbucotary imkd ai DTZ :>? emccmak6

mk :>>= EOK OB rdgdmvd` o

rdbucotary imkd ai DTZ ?4? emccmak6

mk :>?? Grd`mt Wumssd rdgdmvd` o

rdbucotary imkd ai DTZ ?4> emccmak6

mk :>?: Idrrastooc OB rdgdmvd` o

rdbucotary imkd ai DTZ ?0> emccmak6 ok`

mk :>?0 TJW OB rdgdmvd o rdbucotary

imkd ai DTZ 7>> emccmak.

Os katd` ojavd, thd `roit cow ak

garparotd grmemkoc cmojmcmty iar thd Wtotd ai

Karth Zhmkd-Rdstphocmo ms bamkb ta jd

`djotd` mk thd Bdreok ^orcmoedkt mk thd

kdor iuturd. Mt wmcc jd mktdrdstmkb ta sdd

whdthdr thd appakdkts ta thd jmcc

suggdd` mk hoctmkb thd eorgh ai cdbmscotmak

grdotmkb garparotd grmemkoc cmojmcmty.

:: Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

7/23/2019 Corporate Criminal Liability (Clifford Chance)

23/72

:7Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

Mktra`ugtmakO`emkmstrotmvd vmgormaus cmojmcmty iar

garparotd dktmtmds iar grmeds gaeemttd`

jy thdmr depcaydds wos imrst mktra`ugd` mk

Mtocy jy @dgrdta Cdbmstotmva ka. :7? ai

:>>? (Cow :7?). ^rdvmauscy, vmgormauscmojmcmty wos gavdrd` dxgcusmvdcy jy thd

cow ai tart.

CmojmcmtyMk whot gmrguestokgds gok o

garparotd dktmty mkgur grmemkoc ar

quosm-grmemkoc cmojmcmty1

Iar o garparotd dktmty ta jd hdc` cmojcd

uk`dr Cow :7?, thd aiidkgd eust hovd

jddk gaeemttd` (ot cdost mk port, mi kat

dxgcusmvdcy) mk thd mktdrdst ar iar thd jdkdimt

ai sugh garparotd dktmty. Gakvdrsdcy, thd

garparotd dktmty ms kat cmojcd mi thddepcaydd hos ogtd` dxgcusmvdcy mk thdmr ar

o thmr` portys mktdrdst.

Rhot aiidkgds gok o garparotd

kat gaeemt1

Tk`dr Cow :7? o garparotd gok jd hdc`

cmojcd akcy mk rdcotmak ta spdgmimg grmeds

(thd Zdcdvokt Aiidkgds) cmstd` uk`dr

ortmgcds :0 dt sdq. Mk o``mtmak,

rdspaksmjmcmty eoy ormsd mi thd depcaydd

om`s ok` ojdts thd gaeemssmak ai sugh

grmeds. Imkoccy, thd garparotd gok jd hdc`cmojcd ocjdmt dxpasd` ta cawdr pdkoctmds

dvdk mk thd dvdkt thot thd rdcdvokt

aiidkgd ms edrdcy ottdeptd` jy thd

depcaydd. Phd Zdcdvokt Aiidkgds mkgcu`d

thd iaccawmkb?> ak thd grmemkoc cmojmcmty

ai cdboc pdrsaks (thd Cow).

7

Mtso`aptmak, whmgh rdprdsdkts o smbkmimgokt

ghokbd ta thd prmkgmpcds ai thd

Cuxdejaurb cdboc systde, wos mkicudkgd`

jath jy mktdrkotmakoc gaksm`drotmaks sugh

os rdparts irae thd Imkokgmoc Ogtmak Posf

Iargd ok` jy o `dcmjdrotd diiart ai thd

Cuxdejaurb cdbmscotar.0Phd Cow oppcmds

ta occ garparotd dktmtmds (mkgcu`mkb pujcmg

cdboc dktmtmds) wmth thd dxgdptmak ai thd

Wtotd ok` thd cagoc bavdrkedkt dktmtmds.4

CmojmcmtyMk whot gmrguestokgds gok o

garparotd dktmty mkgur grmemkoc ar

quosm-grmemkoc cmojmcmty1

Mk bdkdroc, o garparotd dktmty eoy jd hdc`

cmojcd mi o grmed ar ok aiidkgd hos jddk

gaeemttd` mk mts koed ok` mts mktdrdst jy

akd ai mts stotutary ja`mds ar jy akd ar

eard ai mts `mrdgtars, whdthdr `d lurd ar

`d iogta.

O stotutary ja`y ms `dimkd` os akd ar

eard physmgoc ar cdboc pdrsaks whmgh

hovd spdgmimg iukgtmak mk thd arbokmsotmakai thd garparotd dktmty, mk oggar`okgd

wmth thd rdcdvokt cow bavdrkmkb thot dktmty.

Phms gok jd o iukgtmak ai o`emkmstrotmak,

`mrdgtmak, rdprdsdktotmak ar gaktrac.

Rhot aiidkgds gok o garparotd dktmty

kat gaeemt1

Cuxdejaurb hos o thrdd-tmdr systde ai

aiidkgds, whmgh mk `dsgdk`mkb ar`dr ai

brovmty ord goccd`< (m) grmeds (grmeds)6

(mm) aiidkgds (`cmts)6 ok`

(mmm) gaktrovdktmaks (gaktrovdktmaks).

Garparotd dktmtmds ord kat cmojcd iar thd

gaeemssmak ai gaktrovdktmaks, whmgh

hovd jddk spdgmimgoccy aemttd` irae

thd Cow.

Phdrd ms ka cmemtotmak ak thd grmeds ok`

aiidkgds whmgh o garparotd dktmty ms ojcd

ta gaeemt. Mk`dd`, thd Cow wos `roitd`

jy o``mkb garparotd dktmtmds os patdktmoc

pdrpdtrotars ta thd Grmemkoc Ga`d mk ar`dr

ta rdk`dr thd Grmemkoc Ga`d oppcmgojcd ta

thde, sujldgt ta gdrtomk gak`mtmaks

spdgmimg ta garparotd dktmtmds ok` wmth thd

dxgdptmak ai gaktrovdktmaks. Hawdvdr,

thdrd ord gdrtomk grmeds ok` aiidkgds

whmgh, jy thdmr vdry koturd, gok akcy jd

gaeemttd` jy koturoc pdrsaks.

Ord thdrd oky spdgmimg `didkgds

ovomcojcd1Phdrd ord ka `didkgds dxprdsscy sdt aut

mk thd Cow ak whmgh akcy garparotd

dktmtmds embht rdcy. Hawdvdr, occ aiidkgds

iar whmgh garparotd dktmtmds ord patdktmoccy

cmojcd rdqumrd thd prasdgutmak ta pravd

wmciuc iouct (`ac bdkdroc) ok` sa o

garparotd dktmty gauc` o`vokgd spdgmimg

orbuedkts mk mts `didkgd (sugh os hovmkb

oppraprmotd pragd`urds mk pcogd,

dxdrgmsmkb o`dquotd survdmccokgd avdr mts

depcaydds, ok` sa iarth) thot o physmgoc

pdrsak gauc` kat.

Rhot ms thd rdcotmakshmp jdtwddk thd

cmojmcmty ai thd garparotd dktmty ok` mts

`mrdgtars ok` aiimgdrs1

Phd Cow oppcmds thd prmkgmpcd ai

gueucotmvd cmojmcmty ai garparotd dktmtmds

ok` physmgoc pdrsaks. Phd cabmg jdhmk`

thms prmkgmpcd ms ta ottrmjutd grmemkoc cmojmcmty

ta o garparotd dktmty iar ok aiidkgd thot

hos, `ud ta thd koturd ai thd aiidkgd,

jddk gaeemttd` jy akd ar eard physmgoc

pdrsaks. Phd ome ai thms pravmsmak ms ta

prdvdkt physmgoc pdrsaks usmkb thd

garparotd dktmty os o shmdc` iar thdmr awk

grmemkoc cmojmcmty. Katd thot thd grmemkoc

cmojmcmty ai thd garparotd dktmty ms mk ka

gosd outaeotmg, ok` wmcc ocwoys kdd` ta

jd spdgmimgoccy rucd` upak jy thd gaurt.

^ragd`urdRha ms rdspaksmjcd iar mkvdstmbotmkb

ok` prasdgutmkb aiidkgds gaeemttd`

jy garparotd dktmtmds1

Phdrd ord ka ja`mds wmth o spdgmimg rdemt

ta prasdgutd garparotd dktmtmds octhaubh

gdrtomk `mvmsmaks ai thd stotd prasdgutmak

sdrvmgd (d.b. thd imkokgmoc mkiareotmak

`mvmsmak) eoy mk progtmgd jd eard

irdqudktcy mkvacvd` mk thd prasdgutmak ai

garparotd dktmtmds thok athdr `mvmsmaks.

^ukmshedktGarparotd dktmtmds

Imkds rokbd irae o emkmeue ai DTZ 4>>

ta o eoxmeue ai DTZ 24>,>>> mk eottdrs

rdcotd` ta grmeds, ar ta o eoxmeue ai

`aujcd thd imkd oppcmgojcd ta physmgoc

pdrsaks mk eottdrs rdcotd` ta aiidkgds. Mk

eottdrs rdcotd` ta aiidkgds, mk thd gosd ai

spdgmimg aiidkgds iar whmgh thd cow akcy

pravm`ds o pukmshedkt ai meprmsakedkt,

thd Cow dkvmsobds o gakvdrsmak systde,

mkvacvmkb o eoxmeue passmjcd imkd iar

cdboc dktmtmds ai DTZ ?8>,>>>.

Phd ojavd oeaukts ord euctmpcmd` jy imvd

iar gdrtomk grmeds ok` aiidkgds dxprdsscy

cmstd` jy thd Cow (d.b. eakdy couk`drmkb,

ogts ai tdrrarmse ar imkokgmkb ai tdrrarmse,

`rub troiimgfmkb, garruptmak).

Iar mkstokgd, mk thd gosd ai eakdy

couk`drmkb, thd eoxmeue imkd iar physmgoc

pdrsaks ms DTZ ?.:4 emccmak. Jy

oppcmgotmak ai thd ojavd rucds ai

gocgucotmak, thd eoxmeue imkd iar cdboc

dktmtmds ms DTZ ?:.4 emccmak.

:9 Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Cuxdejaurb

Gcmiiar` Ghokgd, Eorgh :>?4

7 Cam `u 7 eors :>?> mktra`umsokt co rdspaksojmcmt pkocd `ds pdrsakkds earocds `oks cd Ga`d pkoc dt `oks cd Ga`d `mkstrugtmak grmemkdccd dt ea`mimokt cd Ga`d pkoc, cd

Ga`d mkstrugtmak grmemkdccd dt gdrtomkds outrds mspasmtmaks cbmscotmvds. Eearmoc O K79, ?? Eorgh :>??, p. 90?.0 Wdd, mk thms rdspdgt, L.-C. Wghmctz, Cds pdrsakkds earocds `sareoms pkocdedkt rdspaksojcds, LPC k ??, ?4 Agtajdr :>?>, p. ?42 dt sdq.4 gaeeukds.

7/23/2019 Corporate Criminal Liability (Clifford Chance)

27/72

:2Garparotd Grmemkoc Cmojmcmty

Eorgh :>?4

Gcmiiar` Ghokgd, Eorgh :>?4

Phd Cow ocsa dkvmsobds thd passmjcd

spdgmoc sokgtmaks ai gakimsgotmak,

prahmjmtmak irae pujcmg pragurdedkt

gaktrogts ok` `mssacutmak, sujldgt ta

gdrtomk gak`mtmaks.

Mk`mvm`uocs

Mk`mvm`uocs eoy jd cmojcd oggar`mkb ta

oppcmgojcd ok` rdcdvokt cdbmscotmak,

mkgcu`mkb, wmthaut cmemtotmak, thd

pravmsmaks ai thd Grmemkoc Ga`d, gaepoky

cow ok` athdr spdgmimg cdboc pravmsmaks.

Rhot iogtars ord tofdk mkta

gaksm`drotmak whdk `dtdremkmkb

thd pdkocty1

Bdkdroccy, Cuxdejaurb grmemkoc cow usds

thd thrdshac` ai thd Gaurts mktmeotd

gakvmgtmak whdk ossdssmkb thd gucpojmcmtyai oky pdrsak ghorbd` wmth ok aiidkgd.

Oggar`mkb ta sghacorcy apmkmak, thd

mktmeotd gakvmgtmak ms thd praiauk`

apmkmak ta whmgh thd lu`bd gaeds mk hms

sauc ok` gaksgmdkgd ok` whmgh ms thd

grmtdrmo ok` iauk`otmak ai thd savdrdmbk

pawdr ai opprdgmotmak ai thd lu`bd

`docmkb wmth thd iogts ai thd gosd.

Iar garparotd dktmtmds, spdgmimg ok`

`mstmkgt pravmsmaks oppcy mk thd gosd ai thd

aiidkgd jdmkb rdpdotd` oitdr prmar

gakvmgtmak< o imxd` euctmpcmdr ms oppcmd` ta

thd imkds edktmakd` ojavd.

Ms thdrd o edghokmse iar dktmtmds ta

`msgcasd vmacotmaks mk dxghokbd iar

cdssdr pdkoctmds1

Phd Cow `ads kat pravm`d iar sugh o

edghokmse. Bdkdroccy spdofmkb,

gaapdrotmak ai thd pdrpdtrotar ok` trymkb

ta rd`rdss thd `oeobd gousd` ord

emtmbotmkb iogtars whmgh thd gaurt wmcc

gaksm`dr. Phdrd ms ka dqumvocdkt gakgdpt

uk`dr Cuxdejaurb cow ai o `didrrd`prasdgutmak obrddedkt6 mk`dd`, dktdrmkb

mkta ok obrddedkt wmth thd pujcmg

prasdgutar ar wmth thd gaurts (ok` thus

kdbatmotmkb os ta whdthdr ar kat thd

gaepoky shauc` jd gakvmgtd`) ms

mepassmjcd uk`dr Cuxdejaurb cow. Akcy

thd pujcmg prasdgutar hos thd `msgrdtmak

ta stort grmemkoc pragdd`mkbs obomkst o

gaepoky (thd sa-goccd` prmkgmpcd ai

appartukmt `ds paursumtds) ok` akgd mt

`dgm`ds ta stort thdsd pragdd`mkbs, thd

gaepoky gokkat stap thde.

Gurrdkt pasmtmakOs thd garparotd grmemkoc cmojmcmty gakgdpt

wos mktra`ugd` rdgdktcy mk Cuxdejaurb, mt

hos rordcy jddk usd` ok` ms thdrdiard stmcc

corbdcy uktdstd` mk progtmgd. Phdrd hovd

jddk sa ior ka smbkmimgokt gosds. Phd Cow

hos hawdvdr jddk dxtdksmvdcy `msgussd`

mk thd Cuxdejaurb cdboc gaeeukmty ok`

thd bdkdroc iddcmkb ms thot thd pujcmg

prasdgutmak sdrvmgd wmcc utmcmsd thd cow ta o

vdry corbd dxtdkt.

7/23/2019 Corporate Criminal Liability (Clifford Chance)

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Mktra`ugtmakGarparotd grmemkoc cmojmcmty mk ^acok` ms

rdbucotd` jy thd Ogt ak thd Cmojmcmty ai

Gaccdgtmvd Dktmtmds iar Ogts ^rahmjmtd`

Tk`dr ^dkocty (thd Cmojmcmty Ogt), whmgh

goed mkta iargd mk :>>7. Mt bdkdroccyoppcmds ta occ garparotd dktmtmds, dxgdpt

thd Wtotd Prdosury, cagoc bavdrkedkt

dktmtmds ok` ossagmotmaks thdrdai.

CmojmcmtyMk whot gmrguestokgds gok o

garparotd dktmty mkgur grmemkoc ar

quosm-grmemkoc cmojmcmty1

Mk bdkdroc, uk`dr thd Cmojmcmty Ogt, o

garparotd dktmty eoy jd cmojcd mi o

spdgmimd` aiidkgd ms gaeemttd` jy o

spdgmimg pdrsak ok` hms/hdr gak`ugt hos

rdsuctd` ar eoy hovd rdsuctd` mk o jdkdimtiar thd garparotd dktmty.

O garparotd dktmty eoy jd hdc` cmojcd iar

aiidkgds gaeemttd` jy?4

Gcmiiar` Ghokgd, Eorgh :>?4

dktmtmds ok` thdrdiard pujcmg prasdgutars ord

rdspaksmjcd iar prasdgutmkb sugh aiidkgds.

Grmemkoc pragdd`mkbs obomkst garparotd

dktmtmds ord gak`ugtd` mk oggar`okgd wmth

thd ^acmsh Ga`d ai Grmemkoc ^ragd`urd

wmth sdvdroc ghokbds rdsuctmkb irae thd

Cmojmcmty Ogt. Phd pragdd`mkbs ord

gaeedkgd ak thd eatmak ai o pujcmg

prasdgutar ar thd mklurd` porty. Phd

`mstrmgt gaurt ms gaepdtdkt ta o`lu`mgotd

thd gosd mk thd imrst mkstokgd. Phd `mstrmgt

gaurts lu`bedkt eoy jd oppdocd`.

^ukmshedktGarparotd dktmtmds

Phd pdkocty iar aiidkgds gaeemttd` jy

garparotd dktmtmds ms o imkd rokbmkb irae

^CK ?,>>> ta ^CK 4,>>>,>>> (opprax.DTZ :4> ta DTZ ?,:4>,>>>). Hawdvdr,

thd imkd eoy kat dxgdd` 7% ai thd

dktmtys rdvdkud dorkd` mk thd imkokgmoc

ydor mk whmgh thd aiidkgd wos gaeemttd`.

Phd gaurt eoy ocsa ar`dr thd iaridmturd ai

oky ajldgt ar jdkdimt whmgh `drmvd` irae

thd aiidkgd.

Eardavdr,