Week 12 Flashcards
Dawn raid
Dawn raids are unannounced inspection by an authority that will create major disruption for a business and may signal the start of protracted proceedings, potentially leading to fines, damages, actions and, in some jurisdictions, personal sanctions for individuals and disqualification for directors
The purpose of dawn raids is to search material evidences in order to initiate an investigation procedure. Suspect behaviors can be varied:
- Collusion among competitors (Cartel)
- Corruption
- Market abuse (insider dealing, use of privileged information etc.)
- State aid –> tax heavens
The prospect of dawn raids has become a reality for many businesses. It is important to know how to handle a dawn raid and to have a response procedure in place:
–to ensure that the company fulfils its legal obligations
–to ensure that the company’s legal rights are respected
–to minimize the impact of the raid on the company’s day-to-day business and reputation.
How to be prepared in case of a dawn raid?
–Designate an investigation response team: this team should include a corporate spokesperson, a corporate decision-maker, a legal counsel and alternates. All team members should be ready to mobilize with little-to-no notice and at all business hours.
–Train employees likely to come in contact with investigators: all employees should be advised on how to communicate with or provide documents or other materials to law enforcement authorities.
–Contemplate conducting mock raids with core personnel: raids are understandably stressful for employees. This stress can be mitigated by periodically conducting mock raids to simulate what employees should expect and be ready to handle during a raid.
What is the fine that can be imposed by competition authorities?
- 10% of global turnover
Non bis in idem principle:
–No legal action can be instituted twice for the same cause of action
–This principles exists in Civil Law countries and in Common Law countries (the principle of double jeopardy)
The principle of non-cumulative sentence does not forbid cumulative sentencing of a criminal court and an administrative authority for the same offence, if the sanctions intend to ensure compliance with separate regulations or to protect specific interests. Therefore, it may be possible to be convicted both by a court and by an administrative authority.
article 4 of the Additional Protocol n°7 of the ECHR
In Europe, article 4 of the Additional Protocol n°7 of the ECHR guarantees the non bis in idem principle and the principle of non-cumulative sentence. It does not forbid cumulative sentencing of a criminal court and an administrative authority for the same offence, if the sanctions intend to ensure compliance with separate regulations or to protect specific interests
Double jeopardy
a procedural defence that prevents an accused person from being tried again on the same (or similar) charges and on the same facts, following a valid acquittal or conviction.
Fine imposed by French stock market authorities
x10 made as a result of the infringment or 100 mln euro (whichever’s greater)
