Several months before the 14th General Election in 2018, a new provision called the Corporate Liability Provision (CLP) was added into the existing MACC Act 2009 (Act 694) in efforts to prevent bribery and corruption involving commercial organisations. The amended MACC Act was gazetted on 4 May 2018. The term “Commercial organisations” covers companies incorporated under the Companies Act 2016 (Act 777), companies formed under the Partnership Act 1961 (Act 135) and limited liability partnership registered under Limited Liability Partnership Act 2012 (Act 743).
This new provision simply means that a commercial organisation commits an offence if any person associated with that commercial organization corruptly gives, agrees to give, promises or offers to any person any gratification for the benefit of the commercial organization. In these cases, the top management – including directors or representatives – may be liable regardless of whether they had knowledge of the corrupt acts committed by their employees or any associated persons. The whole idea of this Section 17A is based on the doctrine of vicarious liability, where the master is made liable for the acts of his/her servant. This is to ensure that businesses do not engage in any form of corrupt practices.
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