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    Question

    Read the following statements thoroughly: 1.

    Companies may be liable for failure to prevent bribery. 2. Companies may defend themselves by proving "adequate procedures.” 3. Only government-owned companies can be prosecuted. Which are correct according to the PC Act?
    A 1 & 2 Correct Answer Incorrect Answer
    B 2 & 3 Correct Answer Incorrect Answer
    C Only 2 Correct Answer Incorrect Answer
    D All three Correct Answer Incorrect Answer
    E Only 1 Correct Answer Incorrect Answer

    Solution

    Section 9 of the PC Act introduces corporate criminal liability for failure to prevent bribery. A company can be prosecuted if a person associated with it bribes a public servant for the company’s benefit. However, the statute provides a defence where the company proves that it had adequate procedures in place to prevent bribery. This liability applies to all companies, whether private or public, and is not confined to government-owned entities.

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