Major new expansion to corporate criminal liability coming into force – Section 250 Crime and Policing Act 2026

The Crime and Policing Act 2026 received Royal Assent on 29th April, and company directors should be aware of how it expands Corporate Criminal Liability to all crimes not just economic crimes.

Section 250 of the Act, coming into force on 29th June 2026, provides that where a ‘senior manager’ of a business or partnership commits any criminal offence whilst acting within the scope of their authority, “the organisation also commits the offence”.

Key points are that section 250 of the Act is not limited to any defined category of offence and contains no defence based on having reasonable or adequate procedures in place to prevent the misconduct.

The new provision is intended to make prosecutions easier, by removing the requirement to prove that the individual committing the offence represented the directing mind and will of the organisation. The Ministry of Justice says it will:-

“bring the law up to date to reflect modern company structures where directing minds are spread across different functions of a business. It will enable prosecutions to progress in more cases where senior level employees who do exert decision making power are found to be involved in the offending”

Where a corporate body is convicted under section 250, financial gains from the wrongdoing may now be caught under the Proceeds of Crime Act 2002 and subject to civil recovery, which is unlikely to be covered by insurance.

Some practical considerations:

Businesses should consider:-

-their governance structures, policies and procedures across all areas of risk, not just those falling under existing enforcement regimes such as health & safety and environment.

– assessing how the wider interpretation of ‘senior management’ applies in their organisation including who has actual and apparent authority, using organisation charts to identify the sources of managerial decision-making which could give rise to liability.

– training and oversight for senior managers covering the wider range of criminal offences which their organisation might now be held liable for.

– how they can use good practice under existing compliance regimes and apply it more widely, for example expertise in creating a “health & safety culture”, where the compliance expectations of the boardroom find their way effectively to the operational front line.

-although reasonable or adequate procedures will not be a defence, it will be highly relevant as a mitigating circumstance.

Corporate bodies and partnerships should make sure they understand and manage their exposure under the new Act. We will watch with interest how caselaw develops under the Act and especially how it is used alongside, or instead of existing legislation, such as the Corporate Manslaughter and Corporate Homicide Act 2007.

For corporate advice Sarah Astley can be contacted at s.astley@gullands.com for investigation or enforcement advice contact Andrew Clarke a.clarke@gullands.com or John Roberts j.roberts@gullands.com