SFO Recovers Dividends from Innocent Shareholder

January 13, 2012
The UK’s Serious Fraud Office today announced a new development in its efforts to tackle corruption and has taken action to recover funds from the shareholder of a UK company that was convicted in 2009 for various corruption-related offences. It is a clear signal from the SFO that it expects shareholders to drive anti-corruption compliance in the companies in which they invest, and confirms that it can recover, through civil action, the proceeds of unlawful conduct that have already been paid out to innocent third parties such as shareholders. In this update, we examine this landmark development, its wider implications and potential impact on investor attitudes.