BU231 Chapter Notes - Chapter 27: Regulatory Offence, Absolute Liability, Mens Rea
Document Summary
Stakeholders groups affected by the business activities of a corporation. (creditors, employees, consumers, competitors, potential public investors, general public) Regulatory offences less serious offences created by government regulation through specialized legislation, agencies and tribunals. Requirement of mens rea prosecution must prove beyond a reasonable doubt that the act was committed and also that it was committed with intent. Absolute liability no mens rea is required for conviction of absolute liability offence. Strict liability presumption of guilt unless the defendant can show reasonable care was taken. Mens rea prosecution must establish a guilty mind on the part of the defendant. Insolvency having liabilities in excess of the realizable value of ones assets or being able to pay ones debts as they fall due. Directors can be held liable for the deficiency if shareholders are paid when the business is insolvent. Maintenance of capital test money paid by shareholders should be preserved as much as possible to absorb any losses or debts.
