MSP pushes ‘equity fines’

MSP Dr Bill Wilson has called on his Westminster colleagues to look at introducing equity fines as a new penalty for corporate crime after his Criminal Sentencing (Equity Fines) Bill fell in the Scottish Parliament. The Justice Committee ruled that it impinged on legislation reserved to Westminster.

He said that his research had revealed that, in 50% of cases, companies found responsible for killing people were fined no more than £12,500 in recent years. And he said that judges are fearful of putting companies out of business by imposing large fines.

“Equity fines, unlike monetary fines, would not directly affect working capital, however, and so it would be easier to impose them at a punitive – or, more importantly, deterrent – level,” he said. “Furthermore, equity fines would squarely target those responsible for companies’ policies, as management is beholden to shareholders.”

He said that the idea of giving judges the option of obliging public companies convicted of criminal offences to issue new shares was widely supported and offered to discuss his proposals with Westminster MPs.