section 400(2)

INTRODUCTION AND BRIEF DESCRIPTION

This section defines the term company for the purpose of the Criminal Code of Canada.

SECTION WORDING

400(2) In this section, "company" means a syndicate, body corporate or company, whether existing or proposed to be created.

EXPLANATION

Section 400(2) of the Criminal Code of Canada defines the term "company" for the purposes of the section. The section deals with offences related to the creation, promotion, and management of companies that are formed for an unlawful purpose or with the intention of defrauding the public. The section includes provisions for punishing those involved in such activities, including imprisonment and fines. The definition of "company" in this section is broad and encompasses any syndicate, body corporate, or company, whether existing or proposed to be created. This includes both formally incorporated companies and informal groups of individuals who come together to conduct unlawful activities. The section is designed to combat white-collar crime and other forms of economic offences that are often perpetrated by companies and their officers. Examples of such offences include securities fraud, insider trading, and money laundering. By defining the term "company" in this way, the section ensures that those who engage in illegal activity as part of a company are held accountable for their actions. It also prevents individuals from using loopholes in the legal definition of a company to evade prosecution for criminal acts. Overall, section 400(2) is an essential component of the Criminal Code of Canada, as it helps to protect the public from fraudulent and criminal activities perpetrated by companies and their officers.

COMMENTARY

Section 400(2) of the Criminal Code of Canada defines the term "company" for the purposes of this section. The section deals with offences related to terrorism and specifically outlines the offence of participating in the activities of a terrorist group. The definition of "company" in this context is broad and encompasses a wide range of entities, including bodies corporate, syndicates, and both existing and proposed companies. The definition of "company" in this section is important because it clarifies the scope of the offence of participating in the activities of a terrorist group. The offence is intended to capture individuals who actively participate in the activities of a group that engages in terrorism. By defining "company" broadly, the section ensures that the offence can be applied to a wide range of groups, regardless of their legal form or structure. The term "company" is commonly understood to refer to a legal entity that is separate and distinct from its owners. A company may be incorporated or unincorporated and may have different legal structures, such as a partnership, limited liability company or corporation. The broad definition in section 400(2) ensures that all such entities are included, whether they already exist or are proposed to be created. The inclusion of proposed companies in the definition is particularly noteworthy. This means that the offence can be applied to individuals who are planning to create a company for the purpose of engaging in terrorist activities, even if the company has not yet been established. This is an important feature because it allows law enforcement to intervene before a group becomes operational and before any harm is caused. The section also includes the term "syndicate" in the definition. This term is less commonly used in modern legal contexts but generally refers to a group of individuals who come together for a particular purpose. The inclusion of syndicates in the definition ensures that the offence can be applied to informal groups that may not have a formal legal structure. Overall, section 400(2) plays an important role in ensuring that the offence of participating in the activities of a terrorist group is applied appropriately and to a wide range of groups. The breadth of the definition of "company" ensures that the offence can be applied to all types of legal entities, whether they already exist or are proposed to be created. This supports law enforcement efforts to prevent terrorist activities before they occur and to hold individuals accountable for their involvement in such activities.

STRATEGY

Section 400(2) of the Criminal Code of Canada is included as part of the section detailing offences related to participation in activities of criminal organizations. This section has been enacted to target corporations, syndicates, and other bodies that are involved in activities that are detrimental to the public interest and that contribute to the development of an organized criminal enterprise. The application of this section of the Criminal Code requires strategic considerations that should be evaluated before developing a response to the issues arising from the involvement of companies in organized crime. Some of the key strategic considerations are as follows: 1. Interagency Cooperation: Since crimes involving organized criminal groups often transcend jurisdictional boundaries, interagency cooperation is crucial. This may include coordination between law enforcement, regulators, and other government agencies. For instance, law enforcement agencies may need to work with corporate regulators to investigate and prosecute crimes committed by companies. 2. Compliance Training: Companies can inadvertently get sucked into organized criminal activities due to poor understanding of regulatory compliance requirements. This is where compliance training can be helpful to employees, who may fall prey to schemes designed by organized criminal groups. It can also be useful for regulatory compliance officers who have a role in areas like employee background checks, transaction monitoring, and whistle-blower reporting. 3. Investigative Techniques: Effective investigations of companies require appropriate investigative tools and techniques, including surveillance, wiretapping, asset tracing, and financial analysis. Conversely, the response to organized crime may involve such initiatives such as undercover operations to identify and prosecute individuals who engage in crimes as part of the criminal network. 4. Risk Assessment: Developing a comprehensive risk assessment plan is crucial to help companies identify potential risks of organized crime activities. This involves identifying internal and external risks, evaluation, and management of the risk. It is also important to integrate a comprehensive risk assessment management framework to help mitigate risks. 5. Legal Framework: Understanding the legal framework surrounding the Criminal Code of Canada is important in developing strategies that work for companies on different levels, including governance, steering committees, and market strategies. 6. Collective Action: Collective action is crucial in the fight against organized crime. This includes the coordination of law enforcement agencies, regulatory bodies, and other stakeholders to prosecute criminals and dismantle their networks. To deal with section 400(2) of the Criminal Code of Canada, corporations need to have a sound compliance program in place. Such compliance programs can be established by implementing mandatory annual training for employees and having clear policies that reinforce the values and ethical standards of the company. The program can also include internal audit procedures that monitor compliance with anti-corruption and anti-money laundering policies and procedures. In conclusion, Corporation engaged in organized crime are a threat to society and can result in significant damage to the economy and social institutions. Therefore, proactive measures must be taken to prevent or mitigate risks associated with organized crime activities. Strategic considerations play a significant role in developing a response that is both effective and sustainable. Companies can benefit from building a culture of compliance, implementing a comprehensive framework, and taking collective action against organized crime activities. As such, effective strategies should go beyond merely reactive measures and incorporate more proactive measures that reduce the risks and mitigate the associated challenges.