What is Section 17A and why should directors care?
Section 17A of the MACC Act 2009 makes a company liable when an associated person — employee, agent, partner — commits corruption for its benefit, and management is personally deemed liable unless the company proves it had adequate procedures. It applies to SMEs, not just listed companies, and it's why counterparty and hiring checks stopped being optional paranoia.
Statutory figures: MACC Act 2009 s.17A GIACC Adequate Procedures Guidelines
Also asked as: section 17a macc; corporate liability directors; adequate procedures defence; s17a compliance sme.
The practical defence is documented prevention: risk assessment, due diligence on the people and companies you deal with, top-level commitment on record. Our due-diligence checks service maps directly onto the 'Risk assessment' and 'Undertake control measures' limbs of the official T.R.U.S.T. guidance.
Key facts
- s.17A MACC Act 2009: corporate liability for associated persons' corruption
- Deemed personal liability for management
- Defence = adequate procedures (T.R.U.S.T.)
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