BAE Systems Plc, R. v [2010] EW Misc 16 (CC) (21 December 2010)

BAE Systems Plc, R. v [2010] EW Misc 16 (CC) (21 December 2010)

The appropriate sentence for failing to keep sufficient accounting records under s221 Companies Act 1985, where payments were made to third parties with a high probability of improper use but no charge of corruption is brought, is a fine reflecting the seriousness of the concealment and the mitigating factors, including voluntary reparation and steps taken to improve corporate conduct.

Citation
[2010] EW Misc 16 (CC)
Parties
Prosecution: R; Defendant: BAE Systems PLC
Jurisdiction
England and Wales
Judgment Date
21 December 2010
Procedural Posture
Criminal / Sentencing After Guilty Plea
Outcome
conviction and fine
Legal Topics
Failure to Keep Accounting Records, Companies Act 1985 S221, Corporate Criminal Liability, Sentencing, Settlement Agreements
Criminal Law Corporate Law Failure to Keep Accounting Records Companies Act 1985 S221 Corporate Criminal Liability Sentencing Settlement Agreements

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Parties

R

Prosecution

BAE Systems PLC

Defendant

Procedural Posture

Criminal / Sentencing After Guilty Plea

Legal Issues

  1. 1 What is the appropriate sentence for failing to keep sufficient accounting records under s221 Companies Act 1985?
  2. 2 Does the Settlement Agreement between BAE Systems PLC and the SFO affect the scope of prosecution and sentencing?
  3. 3 What is the proper basis for sentencing where payments were made to third parties with a high probability of improper use, but no charge of corruption is brought?

Ratio Decidendi

The appropriate sentence for failing to keep sufficient accounting records under s221 Companies Act 1985, where payments were made to third parties with a high probability of improper use but no charge of corruption is brought, is a fine reflecting the seriousness of the concealment and the mitigating factors, including voluntary reparation and steps taken to improve corporate conduct.

Court Disposition

conviction and fine

Orders

  • Fine of £500,000 imposed on BAE Systems PLC
  • Order to pay £225,000 towards prosecution's costs