# What is Section 17A and why should directors care? — RCS
URL: https://robocompanysecretary.com/answers/section-17a-directors/

## What is Section 17A and why should directors care?

Last updated: 20 September 2026 Answer from Robo Company Secretary How we write answers

Section 17A creates corporate liability for corruption by an associated person for a commercial organisation's benefit. It can affect SMEs as well as larger companies. The organisation may defend itself by showing adequate prevention procedures. Directors' personal exposure is a separate legal issue; a purchased screening report does not by itself establish a defence.

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Sources: MACC Section 17A enforcement guidance

Also asked as: section 17a macc; corporate liability directors; adequate procedures defence; s17a compliance sme.

Document proportionate prevention measures, risk assessment, checks and follow-up. Obtain legal advice on the facts and the statutory defences rather than treating a clean due-diligence memo as immunity.

### Key facts

- Corporate liability can arise from associated persons' corruption
- Adequate procedures are the organisation's statutory defence
- A screening report alone does not guarantee protection

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