Arnecke Sibeth Dabelstein | View firm profile
While in many other countries, such as the United States and France, corporate penalties have long been common practice, in Germany only natural persons have traditionally been subject to criminal law. However, on 22 August 2019 the Federal Ministry of Justice and Consumer Protection presented its draft bill for a new and independent law on corporate penalties.
Pursuant to the draft bill, considerable fines may be imposed not only on the persons involved in wrongdoing, but also on companies. This will significantly affect insurance cover, especially in the areas of professional indemnity and directors’ and officers’ (D&O) insurance.