Regulatory Compliance Defense and Corporate Liability
In the modern business environment, regulatory violations often escalate beyond administrative fines to criminal prosecution. Georgian legislation imposes strict liability on company directors, managers, and responsible officers if negligence regarding regulations (environmental, labor safety, financial, data protection) results in severe consequences or significant damage. Regulatory Compliance Defense involves complex legal services aimed at preventing corporate crime and, in the event of criminal prosecution, effectively defending the interests of the company and its executives. This is an area where administrative law intersects with criminal law, and where a single misstep in documentation can become the prosecution''s primary evidence.
What Does This Service Cover?
Lawyers and corporate law specialists listed on Legal.ge offer defense for criminal cases related to regulatory breaches:
- Internal Investigations: Conducting independent internal audits immediately upon the initiation of an investigation by a regulator or prosecutor to establish facts and gather exculpatory evidence.
- Separation of Liability: Identifying the specific responsible individual within the corporate structure to avoid collective or automatic liability for top management.
- Liaison with Regulators: Communicating with state agencies (Labor Inspection, Environmental Supervision, National Bank) to minimize criminal risks at the administrative stage.
- Corporate Criminal Defense: Defending the company as a legal entity against liquidation, suspension of activity, or heavy fines.
- Documentation Audit: Reviewing compliance policies and procedures to prove in court that the company took all reasonable measures to prevent the violation.
Common Scenarios and Real-World Situations
Regulatory violations can turn into criminal cases in the following instances:
The first scenario is "Labor Safety." An accident occurs at a construction site or factory, resulting in the death of an employee. The prosecution investigates not only the safety manager but also the director, charging them with violation of safety rules (Article 240 of the Criminal Code).
The second scenario is "Environmental Damage." A factory discharges unfiltered waste into a river, causing an ecological disaster. This act qualifies as environmental pollution (Article 292), and liability falls on the company''s executives.
The third case is "Financial Regulations." A company violates accounting rules or evades taxes in large amounts. Parallel to sanctions from the National Bank or Tax Service, criminal prosecution begins for money laundering or tax evasion.
The fourth scenario is "Data Privacy." A massive leak of customer personal data occurs due to failure to meet cybersecurity standards. If negligence is established, the issue of criminal liability arises.
Georgian Legal Framework
Defense is based on a complex legislative framework:
- Criminal Code of Georgia: Chapter XI (Crimes against Entrepreneurial or Other Economic Activity), Chapter X (Crimes against Environmental Protection Rules), Article 240 (Violation of Labor Safety Rules).
- Law of Georgia on Labor Safety: Sets standards whose violation forms the basis for criminal prosecution.
- Criminal Procedure Code of Georgia: Defines rules for the criminal liability of legal entities.
Service Process Step-by-Step
- Risk Assessment: The lawyer evaluates the likelihood of criminal prosecution based on the existing administrative violation.
- Preventive Defense: Presenting evidence during the investigation stage to prove that the violation does not contain elements of a crime (e.g., no severe consequences occurred).
- Expert Studies: Conducting engineering, environmental, or financial expertise to refute the charges.
- Court Defense: Protecting the interests of the company and management in court, aiming for acquittal or minimum sanctions.
Why Use Legal.ge?
Criminal cases related to regulations require specific knowledge that goes beyond traditional criminal law. A deep understanding of business processes, technical regulations, and corporate governance is essential. On Legal.ge, you will find lawyers specializing in white-collar crimes and corporate defense. Protect your business and reputation with professional help.
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