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."

If you have any questions about the UK Bribery Act or would like more information about this Alert, please contact Jonathan P. Armstrong, George J. Nemphos, any member of the Private Equity/Venture Capital Practice Group, any member of the Corporate Practice Group, any member of the White-Collar Criminal Law Practice or the attorney in the firm with whom you are regularly in contact.

This article is for general information and does not include full legal analysis of the matters presented. It should not be construed or relied upon as legal advice or legal opinion on any specific facts or circumstances. The description of the results of any specific case or transaction contained herein does not mean or suggest that similar results can or could be obtained in any other matter. Each legal matter should be considered to be unique and subject to varying results. The invitation to contact the authors or attorneys in our firm is not a solicitation to provide professional services and should not be construed as a statement as to any availability to perform legal services in any jurisdiction in which such attorney is not permitted to practice.

Duane Morris LLP, a full-service law firm with more than 700 attorneys in 24 offices in the United States and internationally, offers innovative solutions to the legal and business challenges presented by today's evolving global markets. Duane Morris LLP, a full-service law firm with more than 700 attorneys in 24 offices in the United States and internationally, offers innovative solutions to the legal and business challenges presented by today's evolving global markets. The