Released on: November 27, 2007, 11:05 pm

Press Release Author: Alexandra Lewis

Industry:

Press Release Summary: MP David Blunkett has reassured that no company with a clear
commitment to the protection of its own staff and that of the public has anything to
fear from the introduction of the Corporate Manslaughter Act from next April. The
former Home Secretary was speaking to UK business directors at Aon's seminar on the
2008 Act this morning in London. However, Aon's Tom Sheffield warned that the
challenge would be ensuring the new act does not lead to frivolous civil claims
against directors.

Press Release Body: MP David Blunkett has reassured that no company with a clear
commitment to the protection of its own staff and that of the public has anything to
fear from the introduction of the Corporate Manslaughter Act from next April. The
former Home Secretary was speaking to UK business directors at Aon's seminar on the
2008 Act this morning in London. However, Aon's Tom Sheffield warned that the
challenge would be ensuring the new act does not lead to frivolous civil claims
against directors.

Mr Blunkett, who wrestled with the development of the Act for three and half years,
continued: "The Corporate Manslaughter Act will clarify and codify what should
already be good practice. It will ensure that people can clearly see the difference
between the former common law duties and the development of the offence of gross
negligence under Health and Safety at Work Law, coming together in a way that makes
it possible for the senior management of companies to protect those involved more
effectively.

"What is clear is that in our society which is so risk adverse, it isn't sensible
business risk or enterprise but management accountability, gross negligence and duty
of care that we're dealing with. Previously a senior manager or 'controlling mind'
had to be identified but now it is the lines of responsibility and decision making
processes for which the company will be held to account.

"It is our common endeavour to protect ourselves and those around us. On present
estimates, the objective of preventing the necessity of legal action will be
fulfilled with the potential for around only a dozen cases a year coming to
fruition. My hope is that it will be much less.

"It is essential that companies - and this is spelt out clearly in the 2006
Companies Act, Schedule 3, Section 450 - keep records of decisions and actions to be
taken. Information is vital to ensuring that knowledge is put to the proper use in
protecting both employees and the public."

\"Echoing Mr Blunkett's sentiment on the need for safer workplaces, Aon's technical
director, Thomas Sheffield, highlighted the risks for UK directors. He said: "The
endeavour of the Act is to provide an improved statutory way to scrutinise a
company's governance and its influence on the public. Rather than placing the sole
focus on an individual's negligence, which has been historically hard to prove, it
now emphasises the role of individuals throughout the company. Notwithstanding
this, the Act should not be allowed to create a roadmap for frivolous civil actions
against directors. As such, directors cannot afford to be complacent. They must
check their directors and officers policy to see whether legal cover would be
granted if they found themselves in such a situation."

Aon UK is ranked by A.M. Best as the number one global insurance brokerage based on
brokerage revenues and voted best insurance intermediary, offering classic car
insurance, high value home insurance, entertainment
and media insurance and construction site insurance.


Web Site:
http://www.commercialservices.aon.co.uk/commercialservices/microsites/entertainment/


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