This means that a corporation cannot be criminally liable for acts committed by a representative outside the scope of his employment. In law, the representative would be said to have on a frolic of their own.
b) When the crime committed is crime that cannot be punished through fines. This is due to the principle that a company cannot be jailed or even punished by corporal punishment. The only punishment available will be a fine.
The most common criminal penalty imposed against the corporation is a fine. For this purpose a corporation would be fined a certain amount of money depending on the capital nature of the crime so committed. A corporation would be fined if it commits certain acts which are punishable by fine or if the corporation tolerates the actions of its representatives.
Consequently, punishment can be imposed to the perpetrator of the crime but shared amongst other innocent parties. This will be in form of a reduction of wages/salary available to all employees. It also results in reduction of profits hence dividends payable to the shareholders.
The corporation can also be punished by way of a forced winding up.