LAW REVIEW ARTICLE

In our private lives, the area of law we will experience the most, either directly or indirectly would have to be the criminal law. Not necessarily through contravening its principals, the individual citizen will more commonly encounter its breadth in the course of their everyday lives, considering as a factor the legal ramifications of any desired conduct or decision in the decision making process. For most of us, we tend to live our lives within these predetermined boundaries with no second thought or question as to the morality of the prohibited option nor the moral authority behind it. In this article, it is proposed to look at the nature and scope of the criminal law in our society, and to discuss whether as an entity it is too intrusive, or whether it is naturally a required aspect of regulating society.

It is often said academically that the citizen enjoys freedom to act as he wishes in his life, subject to the regulatory provisions of the criminal law and the criminal justice system. It is thought that as citizens of a particular country, largely at freedom to choose where we live in the world, we impliedly accept the authority of the relevant legal provisions which, for the most part, regulate on a moral level. Of course there are exceptions, i.e. criminal laws of a regulatory or secondary nature which do not directly bear any moral message, such as speeding limits or parking restrictions. So, then, to what extent does the criminal law reflect morality, and further from what source is this morality derived?

The criminal law is said to operate in mind of the public good, and the benefit of society. It could, therefore, be argued to be crossing the boundaries into serious restrictions on liberty when it regulates personal conduct like drug use which may not have any wider impact than on that of the person indulging accordingly. Why should the criminal law impose restrictions on what a person can do with his or her own body? Surely our own freewill is a good enough justification for acting outwith the scope of the law in these types of scenario?

Furthermore an interesting area of the criminal law is potential liability for omissions. In this sense, the citizen can actually be punished without acting at all in a specific way. This takes the criminal law beyond a regulatory framework for the public good into an actual coercive force to make people positively act in a certain way. For example, in some jurisdictions there is a legal duty to report a road traffic accident. This means a citizen who is aware of the occurrence of such will have committed a criminal offence where he does not act in the prescribed manner. Again, this is surely affording a broad scope to the criminal law, which may be seen by some as intruding on the fundamental freedoms and values upon which most modern nations were built.

It is interesting to consider the real impact of the criminal law, and the sheer breadth of conduct it regulates. From the objectively morally wrong to the less obvious cases of imposition of liability, the criminal law places severe restrictions on the general principal of absolute liberty, which is clearly the subject of much academic and philosophical debate.

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Limited liability is one of the most successful commercial creations of all time, almost singularly responsible for the growth and expansion of capitalism. Encouraging risk and promoting successful enterprise through both small and large businesses alike, limited liability has been the driving force behind economic success in the Western world and is one of the most celebrated legal creations of all time. But what is it about limited liability that makes it so successful? Indeed, is the structure of limited liability fair as regards creditors, who ultimately bear the brunt of this mechanism?

Limited liability in general means a sacrifice of privacy in return for the benefit of limited personal liability. In layman’s terms, this means that the company promoter is not personally liable for any of the company’s debts, thus encouraging risk and promoting enterprise. For most small businesses, it is a lifeline, and without it the economy would level out and stifle with fewer new start-ups each year. At the back end, however, these businesses leave behind a trail of debts that ultimately result in financial loss for lenders and those that operate on credit terms. This raises the general question of whether limited liability as a creation is fair for the creditors it so apparently prejudices?

Limited liability has given life to companies across the world, by providing the reassurances necessary to entrepreneurs to take the risk, safe in the knowledge that personally speaking they should come out unscathed. From this, more companies have grown and flourished, which has led to more jobs and better state welfare for virtually all capitalist economies. The strength of this function has gone a long way towards building the great superpowers, and is seriously underestimated as a legal construct.

Limited liability leaves a gap in the pockets of those companies that lend money or offer their customers credit terms during the course of their business. As a consequence of the promoter’s ability to walk away with his hands clean, many businesses find the squeeze of bad debts too severe, and end up having to take on credit of their own to meet the shortcomings. In theory, limited liability leaves creditors in a weak situation, with relatively limited powers to regain the full amount of any monies due.

In reality, limited liability doesn’t operate in that way. Of course, many businesses go under every year as their owners walk free of encumbrance, but generally speaking the economic world does not work between insolvent companies. However, the flexibility allowed by limited liability has meant debt in a sense has become effective currency, and has helped businesses to survive during tough times, and to seek the financial help necessary without the appropriate risk.

Limited liability might be seen as slightly unfair at the razor’s edge, but it works all round to ensure that everyone has access to credit and the benefits of limitation of damages when it is necessary. Ultimately, it promotes a more competitive, lower-risk environment within which business can flourish and economies can grow and multiply, providing jobs and economic strength to nations embracing its basic form. As legal fictions go, the limited company has undoubtedly prove itself to be one of the most popular ever created, and its growth looks set to continue as it is developed and refined across the world.

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