Corporate probity
Article 'Corporate probity,' of July 2014, on Law 12,846/13 and the strict liability of companies for acts harmful to the Public Administration.
Translated from the original.
Law 12,846/13, also known as the Anti-Corruption Law, or the Corporate Probity Law, created new paradigms for the national and foreign private sector in Brazil. It introduced the principle of strict liability of legal entities for acts of their executives, representatives or employees, provided that they amount to improper contacts with public agents as defined in the law. To avoid liability, and sever the causal link, legal entities must organize structures protecting institutional integrity internally, with whistleblowing channels, independent committees, audits and transparent decision-making processes endowed with safeguards, strengthening new models of operation and organizational culture.
The Public Prosecution Service itself may seek administrative sanctions in a public civil action when there is omission by municipal, state or federal authorities. In addition to a fine of up to 20% of the legal entity's gross revenue, the following sanctions may be sought (these, regardless of omission by administrative authorities): publication of the conviction decision in major media outlets and on the internet; forfeiture of assets, rights or values unduly obtained; partial suspension or interdiction of activities; compulsory dissolution of the legal entity and a prohibition on receiving incentives, subsidies, grants, donations or loans from public bodies or entities and from public financial institutions or those controlled by the public authorities, for a minimum of 1 (one) and a maximum of 5 (five) years. Such sanctions apply in parallel to those provided for in Law 8,429/92.