Disqualifications Compulsorily Apply for Repeated Offences: Italian Companies Face Harsh Consequences

Italian companies found guilty of repeated criminal offenses may face disqualification, a measure that can be particularly damaging to their business operations. According to Article 20, if a company is convicted of a new offense within five years of its previous conviction, it will automatically be disqualified.

Interim Coercive Measures

In addition to automatic disqualification, Italian law allows for interim coercive measures, including disqualifications, to be applied at the pre-trial stage during investigations. This means that companies can face disqualification even before they are formally charged with an offense. The judge may order these measures if there is serious evidence of a company’s commission of an offense and a concrete risk of further offenses being committed.

Reducing the Risk of Disqualification

To reduce the risk of disqualification, companies should take swift action to eliminate any risk of future offenses. This includes:

• Suspending working relations with and revoking the powers of managers or employees alleged to have been involved in criminal activity
• Conducting an internal investigation to identify gaps in their control system and implementing improvements
• Presenting a remedial plan to the authorities, which can include measures such as compensation for damage caused by the offense

Leniency and Cooperation with Authorities

Leniency and cooperation with the authorities can also play a significant role in reducing sanctions. Companies that fully compensate victims of their crimes, eliminate organizational deficiencies, and make profits obtained from the crime available for confiscation may be able to avoid disqualification.

Plea Bargaining

Plea bargaining is another option available to companies, although it is not formally recognized by Italian law. In some cases, companies may be able to reach a plea agreement with prosecutors that reduces the severity of their punishment.

Liability for Foreign Companies

Italian courts have also ruled that foreign companies can be held liable under Law 231 if they fail to implement an adequate and effective compliance program and a portion of the offense was committed in Italy. This means that foreign companies operating in Italy should be aware of their obligations under Italian law.

Conclusion

In conclusion, Italian companies found guilty of repeated criminal offenses face harsh consequences, including disqualification. To mitigate these risks, companies should take swift action to eliminate any risk of future offenses and cooperate with authorities to reduce sanctions.