A construction company was indicted for employing foreign employees without a work permit and an indictment was filed also against a person who was registered at the Companies Registrar as the sole shareholder and director.
The Labor Court held that under law an officer of a corporation must do everything possible to prevent offenses of employing foreign employees by the corporation and the burden of proof to show that the officer was not negligent and did everything possible to prevent the offense is on the office. The Court referred to cases dealing with antitrust offence in which it was held that if a corporation is not liable, the office is not liable, but there is no requirement to indict the corporation in order to indict the officer and even if the corporation reached a plea bargain the officer might still be found liable. A person may be a manager, even if not listed as a director. However, the Labor Court held that the fact that a person is listed at the Companies Registrar as a shareholder or a director does not create criminal liability and it is required to show that the person actually acted as an officer of the corporation. Thus the shareholder was exonerated.