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Negotiated Prosecution

| Transcending Compliance in the Financial Sector: The Impact of Negotiated Prosecutions on Enforcement Capacity and Corporate Governance

Dates: March 2008 to May 2009
Funder: ESRC Small Grants
Award Holder: Professor Sally Wheeler
External Collaborator:  Prof. Justin O’Brien, ANU
Research Staff: Dr Patrick McWilliams
Room: G/033, Institute of Governance, 63 University Road
Tel:     028 9097 3961   
Email: p.mcwilliams@qub.ac.uk

Dr Patrick McWilliams

Project Description

In the United States, Negotiated Prosecutions between corporations and the Department of Justice and the Securities and Exchange Commission (SEC) have increased dramatically since 2002 (not co-incidentally the year of the passage of the Sarbanes-Oxley Act to regulate corporate governance).

There are clear advantages to this process from the regulatory perspective - an admission of wrongdoing, court enforcement, addressing of deficiencies and acceptance of external monitoring. From the corporate perspective there is a shield in place against further action and on-going negative publicity. The research seeks to demonstrate how and why this mechanism developed. It looks at how it has impacted on corporate governance reform, organisational structure and the theoretical underpinnings of corporate law. Further the research seeks to examine the appropriate parameters of this sort of device.