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The Rupert Murdoch/News Corp. phone hacking and bribery scandal is one of the biggest current news stories. I love it, because it is about big time corruption. It is always a learning experience to learn how it happened, why it happened, and, in particular, how the accused respond to the situation.
The Regulation of Investigatory Powers Act covers the broad topic of intercepting communications and Section 79, in particular, has been in the news:
Section 79 of the Act says that directors can be prosecuted if an offence “is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of a director. (Link)
This is the knew or should have known part. You are guilty if you knew. If you didn’t know and, by virtue of your position you should have known, you are guilty.
This is an outstanding way to consider governance and responsibility. It is an admirable standard.
Originally posted 7/18/11