Deferred Prosecution of Legal Persons: Balancing Accountability and the Protection of the Economic Fabric

Abstract

This study examines the relationship between the criminal liability of legal persons and the deferral of prosecution. Recognition of such liability is a major feature of modern criminal policy. Deferred prosecution, by contrast, is an alternative procedural mechanism. It seeks to improve the response to crime without requiring a conventional trial and sentence in every case.

The central question is whether deferred prosecution can balance the criminal accountability of legal persons with the protection of the public interest and the national economy. The study also considers whether this mechanism remains consistent with the fundamental principles of criminal law, especially legality and equality before the law.

The research uses an analytical method to examine statutory provisions, legal scholarship, and judicial approaches. It also uses a comparative method to identify similarities and differences between Algerian law and selected foreign systems, particularly French law.

The study concludes that criminal liability for legal persons is a necessary response to economic development and the growth of organized and corporate crime. Deferred prosecution is not an exemption from liability. It is a modern mechanism that requires corrective action, compensation, and legal compliance. Its legitimacy nevertheless depends on strong legal and judicial safeguards. These safeguards must prevent impunity and maintain a proper balance between deterrence and the continuity of lawful economic activity.