What is Section 17A and why should directors care?
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.
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
Call +60 10-383 5988 (a licensed secretary replies within one working hour (Mon–Fri 8:30am–5:30pm MYT; outside hours, first thing next working day)) or walk in at J-3A-15, Solaris Mont Kiara.