Equity fines for corporate crime: Why they should be back on the legislative agenda

Abstract

Corporate crime causes significant social and environmental harm and its sentencing is frequently ineffective due to the ability of corporations to pass-on monetary fines to stakeholders such as workers and consumers. This article investigates the notion of equity fines or share dilution as an alternative corporate punishment that avoids the pitfalls of conventional monetary fines while acting as a significant deterrent to corporate offending. It does so by responding to the last official Australian critique of this punishment, in light of a 2010 attempt by the Scottish legislature to implement equity fines in that jurisdiction.