In 2006 the Fraud Act was introduced to set out how businesses deal with fraud. If you own a business, you will need to ensure that you have a course put in place explaining your course when faced with fraudulent activity. By having a fraud course put in place when you start your business, it can save you a lot of time, money and exertion if you do come to be a victim of fraud as you will be able to act quickly and efficiently to deal with the problem.
The definition of fraud is any dishonest act which is undertaken to gain something or cause a loss to someone else. The Fraud Act 2006 defines three main types of company fraud.
Asbestos Law Firm
The first is fraud by false representation. False representation is the act of production false statements which are made to deceive the someone receiving them. A false statement can be made orally or in writing. In terms of the supervene that this has on business, this Act means that they cannot release material that is misleading, dishonest or deceptive with the intent from gaining from its publication. An example of this would be to make misleading statements about winning awards for the services that the company in question provides.
The second type of fraud detailed in the Act is fraud by failing to disclose information. In company law, clubs are legally required to disclose details about their share dealings, any contracts that are intended to be shared among the directors of the company, data for the company's investors such as profits and losses and any knowledge that would be foreseen, to be shared in a fiduciary capacity with the company.
The final type of company fraud is fraud by abuse of position. This section of the Act deals with the act of those in payment of the company using their power dishonestly in order to gain something either that be gaining more money or sealing company deals. This section of the Act puts transmit that those in payment of clubs should work in the company and shareholder's best interests. They should also not go embark on a transaction which would gain them requisite financial advantage while affecting the rest of the company negatively. It is also against the law to use insider data or to manipulate the store in their favour.
All clubs must comply with the 2006 Act. If you own a company, the easiest way to make sure that you comply is to put in place a Fraud prevention Policy. The course should include you business' commitment to combating fraud and corruption wherever it is found. It should detail what steps will be taken if fraud is found within your company including how to recover funds and the right to dismiss those that act fraudulently. You should ensure that your fraud prevention course is updated regularly and that all staff are made fully aware of it.