LEGAL DAILY DOSE – 11

19.05.2021 This was the first—and only—time the Liability Convention has
been used when a spacecraft from one country has crashed in
Space law protects you from falling debris, but there another. When the Liability Convention was put into use in this
are no legal penalties for leaving junk in orbit context, four governing norms emerged. Countries have a duty to:
https://phys.org/news/2021-05-space-law-falling-debris-legal.html warn other governments about debris; provide any information
they could about an impending crash; clean up any damage caused
On May 8, 2021, a piece of space junk from a Chinese rocket fell
by the craft; and compensate your government for any injuries that
uncontrolled back to Earth and landed in the Indian Ocean near the
Maldives. A year ago, in May 2020, another Chinese rocket met might have resulted.
the same fate when it plummeted out of control into the waters off However, if you owned a small orbiting satellite that got hit by a
the West African coast. No one knew when or where either of piece of space junk, you and your government would have to
these pieces of space junk were going to hit, so it was a relief when prove who was at fault. Currently, though, there is no globally
neither crashed on land or injured anyone. Space debris is any coordinated space traffic management system. With tens of
nonfunctional human-made object in space. As a professor of thousands of tracked pieces of debris in orbit—and multitudes of
space and society focused on space governance, I've noticed that smaller, untrackable pieces, figuring out what destroyed your
there are three questions the public always asks when falling space satellite would be a very difficult thing to do.
debris gets into the news. Could this have been prevented? What
Space pollution is the bigger problem
would have happened if there was damage? And how will new
commercial companies be regulated as space activities and Current space law has worked so far because the issues have been few
launches increase exponentially? and far between and have been dealt with diplomatically. As more and
more spacecraft take flight, the risks to property or life will inevitably
For space law to be effective, it needs to do three things. First,
increase and the Liability Convention may get more use.
regulation must prevent as many dangerous situations from
occurring as possible. Second, there needs to be a way to monitor But risks to life and property are not the only concerns about a
and enforce compliance. And finally, laws need to lay out a busy sky. While launch providers, satellite operators and insurance
framework for responsibility and liability if things do go wrong. companies care about the problem of space debris for its effect on
So, how do current laws and treaties around space stack up? They space operations, space sustainability advocates argue that the
do OK, but interestingly, looking at environmental law here on environment of space has value itself and faces a much greater risk
Earth may give some ideas on how to improve the current legal of harm than individuals on Earth.
regime with respect to space debris. The mainstream view is that degrading the environment on Earth
What if a rocket landed on your house? through pollution or mismanagement is bad because of its negative
impact on the environment or living beings. The same is true for
Imagine that, instead of landing in the ocean, the recent Chinese space, even if there is no clear direct victim or physical harm. In
rocket crashed into your house while you were at work. What the Cosmos 954 settlement, the Canadians claimed that since the
would current law allow you to do? Soviet satellite deposited hazardous radioactive debris in Canadian
According to the 1967 Outer Space Treaty and 1972 Liability territory, this constituted "damage to property" within the meaning
Convention—both adopted by the United Nations—this would be of the Liability Convention. But, as Article 2 of the Outer Space
a government-to-government issue. The treaties declare that states Treaty declares that no state can own outer space or celestial
are internationally responsible and liable for any damage caused bodies, it is not clear whether this interpretation would apply in the
by a spacecraft—even if the damage was caused by a private event of harm to objects in space. Space is shaping up to be a new
company from that state. According to these laws, your country frontier on which the tragedy of the commons can play out.
wouldn't even need to prove that someone had done something Removing from orbit existing large objects that could collide with
wrong if a space object or its component parts caused damage on one another would be a great place for governments to start. But if
the surface of the Earth or to normal aircraft in flight. the United Nations or governments agreed on laws that define
Basically, if a piece of space junk from China landed on your legal consequences for creating space debris in the first place and
house, your own country's government would make a claim for punishment for not following best practices, this could help
compensation through diplomatic channels and then pay you—if mitigate future pollution of the space environment.
they chose to make the claim at all. Such laws would not need to be invented from scratch. The 2007
While the chances are slim to none that a broken satellite will land United Nations Space Debris Mitigation guidelines already address
on your house, space debris has crashed onto land. In 1978, the the issue of debris prevention. While some countries have
Soviet Cosmos 954 satellite fell into a barren region of Canada's transferred these guidelines into national regulations, worldwide
Northwest Territories. When it crashed, it spread radioactive implementation is still pending, and there are no legal
debris from its onboard nuclear reactor over a wide swath of land. consequences for noncompliance.
A joint Canadian-American team began a cleanup effort that cost The chances of a person being killed by a falling satellite are close
over CAD$14 million (US$11.5 million). The Canadians requested to zero. On the off chance it does happen, current space law
CAD$6 million from the Soviet Union, but the Soviets paid only provides a pretty good framework for dealing with such an event.
CAD$3 million in the final settlement. But just like during the early 20th century on Earth, current laws
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are focusing on the individual and ignoring the bigger picture of Having an implementation agency without adequate due diligence
the environment—albeit a cold, dark and unfamiliar one. Adapting can magnify risks. There may be several agencies in the race with
and enforcing space law so that it prevents and deters actors from questionable track records, litigation history, fraud and corruption
polluting the space environment—and holds them accountable if issues or dubious affiliations. The process of due diligence cannot
they break these laws—could help avoid a trash-filled sky. be over-emphasised considering concerns including financial
ISSUES misrepresentation, conflict of interest, ghost beneficiaries, tax
evasion or inflated expenditure.

International Space Law (Outer Space Treaty, Liability
Convention) Our survey also noted that 75% said their businesses did not have
a governance structure or a definite policy to address ethical lapses

Falling space debris and subsequent liability or fraud in CSR programmes. This can be dangerous as the 2021

How can space law be effective rules will hold the board, CSR committees and CFOs accountable

Issue of Space Debris/Space pollution to oversee and review CSR activities. They are also mandated to
disclose the committee’s composition, policy, and board-approved

Mechanism under the liability convention projects on their websites. Further, the CFO or equivalent is

Future of space law and its priorities required to certify if CSR funds are utilised as approved by the
board.
On CSR, companies will have to step up their vigilance
Companies will have to ramp up internal controls when selecting,
https://www.hindustantimes.com/opinion/on-csr-companies-will- getting information on and functioning of implementing partners
have-to-step-up-their-vigilance- to safeguard against misappropriation, misrepresentation and other
101621261031132.html?utm_source=whatsapp vulnerabilities. The introduction of monetary penalties can be a
The impact of Covid-19 has acted as a driver for the government deterrent, making it crucial to have strong systems, governance,
to shift from a “voluntary” to “mandatory” approach to CSR. The transparency and maintain regulatory compliance.
purpose of Corporate Social Responsibility (CSR) is to drive The accountability of companies has grown manifold, given the
positive social change. India has been at the forefront by making additional compliances and strict penal provisions. It is likely to
CSR mandatory in select categories under the Companies Act, require a significant overhaul in how organisations approach and run
2013. Covid-19 has highlighted the need to have a more structured CSR programmes. The way forward demands CSR implementation,
approach, with corporates playing a key role in relief initiatives. monitoring, record-keeping and ancillary activities be prominent in
But the debate to determine the effectiveness of any previous CSR the company’s wider corporate governance plan.
efforts has thrown up several challenges: Finding reliable
implementing partners, monitoring and tracking funds, and ISSUES
assessing their impact.
Corporate Social Responsibility under Companies Act
The impact of Covid-19 has acted as a driver for the government
Purpose of CSR
to shift from a “voluntary” to “mandatory” approach to CSR.

CSR during the times of Covid
In January 2021, the introduction of the Companies (Corporate

Companies (Corporate Social Responsibility Policy)
Social Responsibility Policy) Amendment Rules, 2021, brought Amendment Rules, 2021 and its impact on Companies and
about sweeping changes, outlining additional responsibilities for
workability.
companies, boards, CSR committees and implementing agencies.
Two key clauses cover unspent funds being transferred to a Legal Current Affairs
designated account and conducting impact assessments. This Answers for 18.05.2021
makes corporate governance critical for CSR, putting the onus on
Justice UU Lalit
stakeholders to maintain the accuracy of records, robust practices
and regular monitoring of CSR expenditure. The amendments will
Kazakhstan
compel CSR committees, boards and the chief financial officers
Geneva Conventions
(CFO) to institute a transparent monitoring mechanism for the 19.05.2021
policy and projects, factoring in potential non-compliance, fraud
and lapses in integrity.
Who is Chief Justice of Delhi High Court?
The 2021 rules require registered entities with a credible track
What is meaning of the word intestate?
record to undertake projects on behalf of a company. All eligible
Where is the National Judicial Academy situated in India?
partners need to be registered with the ministry of corporate
affairs, and obtain a unique CSR registration number. This will
have to be quoted in the company’s annual report.
According to an Ernst & Young (EY) survey, CSR in India: re-
engineering compliance and fraud mitigation strategies, 65% of the
respondents did not have a defined third-party due diligence policy
that covered implementation partners. This was alarming,
considering 75% said they worked with agencies to execute their
CSR programmes. Third-party risk is one of the inherent challenges
that companies need to address upfront and bridge the gaps.
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© Possible education Pvt. Ltd. All rights reserved. Unauthorized copying, sale, distribution or circulation of any of the contents of this work is a
punishable offence under the laws of India.