Corporate Liability:

Legal Responsibilities
 Regulatory Regime

Every regulatory process has 3 key

parties or stakeholders.

a. Discuss or
b. True or False?
 Regulatory Regime

Identify the key stakeholders in a

regulatory process.

Examine the extent to which the duties

and responsibilities of the key players in a
regulatory process can facilitate an
effective compliance and enforcement of
the relevant regulations.
Stakeholders or Parties to a
Regulatory Process

Regulator
Regulated Group
Consumer
Health, Safety & Environment

Health & Safety

Corporate Responsibility
Corporate organisations are required to maintain
health and safety at the work place.

This responsibility is backed by law and a breach

would attract the relevant sanctions.
 Organisations' Legal
Requirement to Maintain
Health & Safety

Satisfactory, safe and healthy conditions for

workers;
Safe plant and system with no risk to health;
Safe and risk free handling, storage and
transportation of articles and substances;
Necessary information, instructions, training and
supervision to ensure health and safety at work;
Organisations' Legal Requirement to
Maintain Health & Safety

Prevent contamination of the

workplace (toxic gases, noxious
substances, vapours, dust, fumes,
mists etc.)
Separate, sufficient, suitable and
adequate toilet and washing facilities
for males and females;
Prevent accidents and injury to health
by minimizing the causes of hazards
 Organisations' Legal Requirement to
Maintain Health & Safety

Consequence of Breach
Its an offence and liable upon summary
conviction to a fine or a term of imprisonment to
breach any of the above.
 Organisations' Legal Requirement to
Maintain Health & Safety

Duty to Report Occupational Accidents and

Diseases
Employer must report occupational accidents
and diseases to the relevant government agency
(Chief Labour Officer or the Inspector of
Factories) .

See sections 118 121 of Act 651 and reg. 18 &

19 LI 1833
Workers Duties and Rights : Health
and Safety

Use of Safety Appliances

To use the safety appliances, fire-
fighting equipment and personal
protective equipment in compliance
with the employer's instructions;

An employer would not be liable should

a worker fail to comply with the above,
Workers Duties and Rights : Health and
Safety

Duty to Report - Exposure to Imminent

Hazards

Worker must report to Employer/Supervisor

when he reasonably believes hes being
exposed to hazards or danger to his life,
health or safety.

He must remove himself from the danger

Employer shall not require worker to return

when the danger is still in existence

Employer shall not dismiss, terminate or

withhold workers wages in that event.
 Cases

Whether an Employer would be liable for injuries

sustained by a Worker at the workplace?

Whether an Employer can transfer his Duties to an

Agent?
Kuni v. State Gold Mining Corporation and
Another [1978] GLR 205-211

Facts:

The plaintiff, an employee of the Prestea

Goldfields Ltd., a subsidiary of the State Gold
Mining Corporation, sustained serious injuries
when a mass of loose graphite rocks fell on him
at the mines.

He brought the present action against both the

State Gold Mining Corporation and the Prestea
Goldfields Ltd. for damages.
Kuni v. State Gold Mining Corporation and Another [1978]
GLR 205-211
Held

Where a person was authorised by statute or

bound by contract to do a particular work, he
could not escape responsibility by contracting
with another person to do it.

It was clear that the plaintiff was seriously
injured whilst he was resting near the
footwall side of the stope drive after shoveling.
 Kuni v. State Gold Mining
Corporation and Another

This area did not appear to have been

effectively barred down of loose or loosened
rocks by the senior headman.

The responsibility of the agent was that of

the employer, and the State Gold Mining
Corporation was to be held liable for the
negligence of the mines manager of Prestsa
Goldfields Ltd. which resulted in the injuries
suffered by the plaintiff
 Employers Duty

Whether or not an Employer has a Duty to Provide:

A Safe System of Work and

Competent Fellow Workmen.
 Moshie v. State Gold Mining Corporation [1968]
GLR 944, Annan J .

The plaintiff was the headman of labourers in the

defendants' employment. His right hand got
crushed whilst loading a pontoon in the usual
course of his employment

He claimed damages for personal injuries arising

from the employers failure to provide competent
workmen, a safe system of work and failure to fence
a dangerous machine.
 Moshie v. State Gold Mining Corporation
[1968] GLR 944, Annan J.

Held:

the Employers workmen were negligent in the

performance of their duties;

the Employers were negligent in that their system of work

in respect of the work done by the plaintiff was not safe.

The machine in which the plaintiff's hand was caught was

a dangerous one which should have been fenced.

There was a statutory duty on the defendants to

anticipate the kind of accident which had happened and
to fence the machinery in that area.
 Whether or Not an Employer Owes a Duty to
Persons Other than Employees (Third Parties)

Organisations' must conduct their undertakings in

such a reasonable manner so as not to injure or
expose persons not in their employment but who may
be affected, or exposed to risks to their health and
safety.
See Donoghue v. Stevenson 1932 AC 562.

It is the duty of Organisations' to provide prescribed

information and protective measures to such persons
so as not to expose them to risks to their health and
safety.
Environmental & Health Hazards

Corporate Responsibility
Duty to Protect the Environment and Prevent
Health Hazards

The Ghanaian laws make specific provisions for

the:
protection of the environment and
prevention of health hazards.
Environmental & Health Hazards

The Body responsible for protecting the

environment in Ghana is the Environmental
Protection Agency, established by the EPA Act,
1994 (Act 490).

Powers of EPA is exercised through the issue of :

Environmental Permits
Pollution Abatement Notices
Enforcement Notices
Environmental & Health Hazards

Functions of EPA
Control Environmental Pollution

EPA issues Environmental Permits and Pollution

Abatement Notices to:
control the volume,
types,
constituents and
effects
of waste discharges, emissions, deposits or Other
source of pollutants and of substances which are
hazardous or potentially dangerous to the
quality of the environment or any segment of
the environment;
 Environmental & Health Hazards

Control of Volume, Intensity and Quality of

Noise in the Environment.

EPA issues notices in the form of directives,

procedures or warnings to such bodies as it
may determine for the purpose of controlling the
volume, intensity and quality of noise in the
environment.
 Environmental & Health Hazards

Enforcement Notices by EPA

In performing its duties, the EPA, may

issue and serve enforcement
notices, on persons responsible for the
undertaking where it appears to it
that:

the activities of any undertaking poses a

serious threat to the environment or
to public health
Environmental & Health Hazards

Offence = Non-Compliance with Enforcement

Notice or Permit

It is worth noting that the law makes it an offence

punishable upon summary conviction to a
fine and in default to a term of imprisonment
for failing to comply with an enforcement notice
or permit issued by the EPA.
Mining, Oil & Gas

There is always a risk of pollution in some form at

each stage of mining and petroleum operations,
from the initial search for minerals /oil to their
transportation to consumers.
Such pollution may injuriously affect
humans,
animals and
plant life.
 Duties of Mining, Oil & Gas companies

to use safe and healthy means of

mining and drilling at all stages.

to take reasonable care not to cause

harm to persons, plants, animals and
the environment.
Mining, Oil & Gas - Duties

To take steps that are necessary to prevent the

pollution of the environment as a result of their
operations (Mineral and Mining Act,1986 ;s 72).

It is the duty of the owner of every mine or works to

make financial and other provision and take other
steps as may be necessary to secure that the mine
or works is managed and worked in accordance
with law (Mining Regulations,1970 (LI 665)
Mining, Oil & Gas - Duties

To ensure the health and safety of:

employees
Consumers
residents of the communities in which they operate
the environment and
other third parties.
Offences by Bodies of Persons under the Law

Consequences of an Offence Committed by a Body of

Persons

Body Corporate (Other than a Partnership)

Persons to be deemed as having committed the offence:
The Body corporate
Each director or
An officer of the body corporate

Partnership
All partners shall be deemed to have committed the
offence.
 Discussion

Examine the events and aftermath of

the June 2015 flood at Circle in Accra.

a.Responsibilities of the stakeholders

before and after the event.
b.Liabilities arising: Who is to blame and
for what.
c.Rights of the affected persons
Agriculture-Fisheries: Duties

To Use Safe and Healthy Means of Fishing

The law makes provision for the prohibition of

certain fishing methods which may negatively
affect water bodies and the environment
(Fisheries Act, 2002 (Act 625) .
 Agriculture-Fisheries: Duties

Prohibited Fishing Methods:

Use of Explosive, Poison/Noxious Substance

A person shall not permit to be used, use or attempt

to use any explosive, poison or other noxious
substance for the purpose of killing, stunning,
disabling or catching fish, or in any way
rendering fish more easily caught; or
Prohibited Fishing Methods

Carrying of Explosives, Poison or Noxious Substance (2km

radius)

A person shall not carry on board or have in his possession

or control without lawful authority at any place within a
2 kilometer radius from any shore or river, any
explosive, poison or other noxious substance in
circumstances indicating an intention of using such
substance for any of the purposes prohibited.

Any explosive, poison or other noxious substance found

on board a fishing vessel shall be presumed, unless the
contrary is proved, to be intended for the purposes
prohibited.
Offences & Penalties

Sells/Receives Knowingly or has Reasonable Cause

A person who sells, receives or possesses fish
taken by any prohibited means and who knows
or has reasonable cause to believe that the
fish has been so taken commits an offence and
liable to a fine etc.
Offences & Penalties

Forfeiture of Catch & Apparatus

In addition, the catch, fishing gear or other
apparatus or any combination of them used in
the commission of the offence shall be forfeited
to the State.
Pollution of Fishery Waters
Introduction of Harmful Substances - Offence
A person who directly or indirectly introduces a harmful
substance into the fishery waters which adversely
affects the habitat or health of the fish or other living
aquatic resource commits an offence and is liable on
conviction to a fine.

Compensation for Loss & Clean Up Cost

The person may be ordered by the court to pay such
additional amount as the court may determine in
compensation for any loss suffered as a result of the
introduction of the harmful substance and any related
clean-up costs.
Case Study
Cyanide Spillage By Newmont,
Ghana

On 8 October 2009 an overflow of sodium

cyanide process solution occurred at the
companys Ahafo gold mine processing
plant site after a pond-level instrument
malfunction, resulting in water pollution
and death of a number of fish.

A report by the EPA showed that the

company breached their environmental
permits published on 25 April 2005.

 Cyanide Spillage By Newmont, Ghana

The Ghanaian Ministerial Panel, which evaluated the
accident, has requested the company to pay an amount
for its inability to prevent, report and investigate the
mishap in an appropriate and timely manner.

According to the Ghanaian Ministerial Panel report, the

company was liable to pay compensation for:

simultaneously running several water ponds

failing to inform the regulatory agencies and
communities in good time
Absence of preventive measures, amongst others
 Cyanide Spillage By Newmont, Ghana
Newmont was fined $4.9m in compensation for the
cyanide spill.

The compensation was to be shared amongst:

the affected communities
the Ghanaian Environmental Protection Agency
(EPA), and
the Inspectorate Division of the Minerals
Commission, which suffered most from damage to
the environment.
Reasons for the Fine

the company must be directed to pay a fine

for violating certain provisions of the
environmental permit, deliberately holding
information on the spill from EPA, till 10th
October 2009, 3 days after the incident.

The fine must be deterrent in nature to the

company and other players of the industry.
Other Remedies for the
Breach

The company must provide permanent, portable

and adequate water for communities affected by
the spill.

It must submit to the agency its emergency

response procedures and incident classification
criteria for review.

Comprehensive studies on soil and all sediment

within the operational area must be conducted to
trace the high sources of the metal concentration.
 Question
Saska Oil Ltd is a big oil mining company operating on
the shores of a fishing coastal village for the past three
years. Due to some unexplained reasons there appear
to be frequent oil spillage along the coast and even on
the high seas resulting in huge losses in the fishing
business and rendering over 90% of the community
workforce jobless.

Children living in the village appear to be showing

signs of stunted growth and unexplained diseases.

Some site engineers have also been complaining of

having difficulty in breathing.
Question

As a consultant to Saska Oil Ltd, you

have been approached by the Board of
Directors to find a permanent and
efficient solution to these problems.

Advise Saska Oil Ltd on its liabilities,

indicating any implications for CSR.
 Case Studies

Organisations'' duties - Provisions of safe system of

working - Failure of Organisations' to remedy known
defects in machine - Industrial accident - Whether employer
was in breach of his common law duty to provide proper
machinery Ekem v. Wiseway Cleaners Ltd [1981]
GLR 801, Twumasi.

Organisations'' duties - Provision of adequate

training and supervision - Employee fatally injured while
operating dangerous machine - Claim against employer for
negligence and breach of statutory duty to provide
adequate training and supervision - Failure of plaintiff to
lead evidence to establish breach of statutory duties -
Nature and scope of Organisations'' duties to provide
training and supervision - Factories, Offices and Shops Act,
1970 (Act 328), s. 36 Ekem v. Wiseway Cleaners Ltd
[1981] GLR 801, Twumasi J.
Case Studies

Fencing - Unguarded electric saw-machine -

Whether dangerous machine - Whether risk of
injury in using unguarded saw-machine
reasonably foreseeable - Meaning of "dangerous
- Factories, Offices and Shops Act, 1970 (Act 328),
s. 38 (1) Nelson v. Mensah [1976] 1 GLR
178, Edusei J.
 Food & Drugs
Class Presentation

Considering the sale of various unwholesome and

expired goods and drugs being sold in our markets,
it can be concluded that the Food and Drugs laws of
Ghana has failed to achieve its purpose.

Discuss
 Ghana Standards Authority
Class Presentation

The Ghana Standards Authority is an institutions created

and existing in the Ghanaian statute books only. It has no
force in the export market and has been unable to maintain
international standards.
How true is this statement?