The Spark: A Corporate Manslaughter Primer
A Swiss nightclub fire is a stark lesson in director liability. The law does not wait for a verdict.
The Context
At approximately 01:30 on 1 January 2026, a fire at Le Constellacion Bar in Crans-Montana killed at least 40 people. Swiss authorities have identified the probable cause as sparkling flares placed in champagne bottles and held too close to the ceiling. The ignition was rapid. The venue was a basement. The investigation is now criminal. While no charges have yet been filed, the legal machinery has begun. This is not an accident report; it is a prelude to a prosecution.
The Risk
Directors may be personally liable if a gross failure in their duty of care leads to a death. Under the Health and Safety at Work Act 2015 (HSWA), a PCBU’s primary duty extends to ensuring the safety of others, including patrons. The Companies Act 1993 imposes a duty to act in good faith and in the best interests of the company. A failure to oversee and resource adequate safety protocols—such as those governing pyrotechnics, egress, and fire suppression—may constitute a breach of that duty. In a worst-case scenario, this could form the basis for a charge of manslaughter by gross negligence. The maximum penalty for an individual under the HSWA is five years’ imprisonment and a $600,000 fine. The reputational capital is incalculable. The law does not recognise ‘celebratory items’ as a defence.
The Control
Your governance framework must treat foreseeable celebratory risks as critical operational hazards. The board must mandate, fund, and verify a safety management system that explicitly addresses third-party activities and temporary event risks. This is not an operational checklist; it is a strategic duty. Audit trails of board minutes, risk register reviews, and capital expenditure for safety must be impeccable. They will be subpoenaed.
The Challenge
These are the critical questions you should be raising at the board table:
| When did this board last review and challenge the adequacy of our venue’s fire safety protocols, specifically for foreseeable high-risk events like New Year’s Eve? | |
| What documented evidence do we possess that demonstrates we have proactively identified and controlled the risk of patrons or staff introducing unauthorised pyrotechnics or ignition sources? | |
| If a criminal investigation began tomorrow, would our board minutes and risk register clearly show a diligent and informed governance process, or a pattern of neglect? |