Challenges of the criminal response to the corporate crime of culpable and fraudulent Bankrupt Corporation

Articles in Press

Document Type : Research Paper

Authors

1 Department of Law, Faculty of Law, Tarbiat Modares University of , Tehran, Iran

2 Assistant Professor, Department of Law, Faculty of Literature and Humanities, Shahrekord University, Shahrekord, Iran

Abstract

The possibility of committing a crime by corporations and the possibility of their punishment is the dominant theory of criminal law doctrine today. One of the crimes that corporations tend to commit is bankruptcy by fault or fraud. The significant issue regarding the criminal responsibility of corporations in instances of committing culpable or fraudulent Bankrupt is the punishments applicable to these persons and the quality of executing these punishments.This research, with analytical-descriptive method, after examining the challenges related to criminal responses to a natural person as the legal representative of a bankrupt legal entity, deals with non-criminal responses to a bankrupt corporation and challenges related to criminal responses to a bankrupt corporation. The findings indicate that due to the priority of the bankruptcy regime over the culpable or fraudulent bankrupt corporation compared to the penal system, many of the criminal penalties stipulated in Article 20 of the Islamic Penal Code are inapplicable to the legal person. As if, the first effect of the bankruptcy system on a bankrupt corporation is the liquidation of the corporation, while the heaviest criminal response considered for a legal person in Article 20 is the liquidation of the corporation. When a corporation is faced with a non-criminal liquidation guarantee, how can it be prosecuted with penalties such as fines? On the other hand, the possibility of punishing a natural person is also impossible due to the "principle of independence of a legal person from natural persons". Therefore, it seems that the Iranian criminal system is faced with a crime related to the issue of criminal law, which due to the lack of specialization of criminal laws related to the crimes of legal entities by the legislator, criminal responses will not be able to apply or be effective in this regard.

Keywords

Main Subjects

Majlis and Rahbord

Articles in Press, Accepted Manuscript
Available Online from 14 August 2023

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