(1) A corporation is guilty of an offense when:
(a) The conduct constituting the offense consists of a failure to discharge a
specific duty imposed upon corporations by law; or
(b) The conduct constituting the offense is engaged in, authorized, commanded or
wantonly tolerated by the board of directors or by a high managerial agent
acting within the scope of his employment in behalf of the corporation; or
(c) The conduct constituting the offense is engaged in by an agent of the
corporation acting within the scope of his employment and in behalf of the
corporation and:
1. The offense is a misdemeanor or violation; or
2. The offense is one defined by a statute which clearly indicates a
legislative intent to impose such criminal liability on a corporation.
(2) As used in this section:
(a) "Agent" means any officer, director, servant or employee of the corporation or
any other person authorized to act in behalf of the corporation.
(b) "High managerial agent" means an officer of a corporation or any other agent
of a corporation who has duties of such responsibility that his conduct
reasonably may be assumed to represent the policy of the corporation.
Effective: January 1, 1975
History: Created 1974 Ky. Acts ch. 406, sec. 24, effective January 1, 1975.
Notes of Decisions
Caretenders, Inc. v. Commonwealth, 821 S.W.2d 83 (Ky. 1991).
· cites it 5× “The Commonwealth points out that the criminal statute on corporate liability, KRS 502.050, provides that a corporation is guilty of an offense when the conduct constituting the offense is engaged in by an agent of the corporation acting in the scope of his employment.”
Commonwealth v. Fortner LP Gas Co., 610 S.W.2d 941 (Ky. Ct. App. 1980).
· cites it 3× “There is a specific section, KRS 502.050, as follows: KRS 502.050. Corporate liability.”
Koonce v. Commonwealth, 769 S.W.2d 73 (Ky. Ct. App. 1989).
“010(3), the possession of any quantity of marijuana, if useable, in detention facilities is prohibited and, further, punishable only as a felony offense in violation of KRS 502.050.” (Our emphasis). Had the Commonwealth been unable to introduce sufficient evidence that the…”
Rice v. Commonwealth, 621 S.W.2d 911 (Ky. 1981).
· cites it 2× “, a corporation, of which Wayne Rice is the principal shareholder and operator, was indicted pursuant to the offense of corporate liability under KRS 502.050. Both were found guilty as charged.”
B.L. v. Schuhmann, 380 F. Supp. 3d 614 (2019).
“020 (liability for conduct of another; complicity); KRS § 502.050 (corporate liability), KRS 506.”
McHargue v. Pickard (E.D. Ky. 2020).
“080 (criminal facilitation), KRS 502.050 (imposing corporate liability for criminal conduct); and state law tort claims of outrageous conduct, intentional infliction of emotional distress, and negligence.”
Harrison v. Diamond Pharmacy Servs. (W.D. Ky. 2022).
“060, KRS 502.050, and/or KRS 502.060” when “[o]n or about January 20, 2021, Plaintiff checked at SAM meds and was informed the Defendant(s) would not allow Trelegy Ellipta inhaler to be re-ordered until after January .”
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