The United Kingdom's Bribery Act, which takes effect on July 1, 2011, poses significant compliance requirements and potential financial ramifications for private equity and venture capital investors in the United States.
Private equity investors in a company could be considered "associated persons" and may be liable for a company's default.
The Bribery Act is not confined to the United Kingdom. Investors or executives—even if working for US entities—are potentially within its scope.
If private equity investors cannot prove that they have done the appropriate level of due diligence, a company may be worth less when it later is sold.
For a detailed discussion of the Act, please see the Duane Morris Alert: "UK Bribery Act, Effective 1 July 2011, to Impact Businesses Large and Small."
Please see full alert below for links.
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