BU231 Chapter Notes - Chapter 27: Market Manipulation, Criminal Negligence, Fiduciary

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13 Mar 2013
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The business activities of a corporation affect many external groups. Stakeholders groups affected by the business activities of a corporation. Some of the protective requirements are proactive, such as requiring disclosure of information or licensing of professionals; these are designed to prevent problems before they occur. Other legislative measures are punitive, such as imprisoning for insider trading: these are designed to punish bad behaviour and deter others. Regulatory offences less serious offences created by government regulation through specialized legislation, agencies, and tribunals. Regulatory offences resemble traditional criminal law because, in order to protect the public interest, they punish those who ignore the rules; however, their penalties are usually less serious. Mens rea offence an offence where the prosecution must establish a guilty mind on the part of the defendant. Strict liability offence an offence where there is a presumption of guilt unless the defendant can show that he or she took reasonable care.

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