A simple change in the law to vary the powers open to Scottish judges in cases of death or injury at work could dramatically change the climate of corporate responsibility, it was claimed yesterday.

SNP MSP Bill Wilson launched a consultation on a proposed Member's Bill to allow judges to fine companies on the basis of their share price rather than their running costs, and to give courts the power to scrutinise company books.

Mr Wilson, who is backed by several campaigning and trade union bodies, said it was a minor change to the law in Scotland which could have a major impact because judges currently failed to use their full power to levy swingeing fines for fear that this would be passed on in company closures and redundancies.

A system of "equity fines" would instead force publicly quoted firms into share issues to pay off their responsibilities, which would hit the shareholders and bosses instead of employees and the public.

He said: "Companies found guilty of criminal offences often appear to have only trivial penalties imposed. For example, the fine for criminally causing the death of a worker or member of the public is less than £12,500 in 50% of cases."

Mr Wilson said this was because judges were concerned about putting firms out of business because "they might possibly be punishing the very employees who were the innocent victims of the companies' offences in the first place".

He added that companies were allowed to give their own version of their financial status, which he likened to burglars being asked how much they would like to pay as a fine. Instead, courts should have the power to investigate the true status of a company.

Louise Adamson, of Families Against Corporate Killers, who lost her brother in an accident, said: "We welcome these proposals for equity fines which will lay the punishment for corporate offending at the feet of those who are ultimately responsible - those running the business - and we hope this can form part of a package of measures to improve health and safety."

The Scottish Hazards Campaign, which is affiliated to groups across the UK and Europe, also backs the proposals. Kathy Jenkins said: "We have consistently called for a wider range of sanctions for the courts.

"We know that straight fines are often paid for by workers, through wage cuts or conditions, or by consumers and members of the public.

"These proposals will ensure that those most responsible for corporate offending bear the cost. We believe that equity fines might prove a more effective deterrent and eventually lead to a reduction in work-related injury and death."

The SNP MSP cited Professor Hazel Croall's paper for the expert group on corporate homicide, which looked at the issue under the previous Holyrood administration and endorsed the possibility of equity fines provided the courts had power to demand a formal independent assessment of a company's finances.

He pointed out that the recent report into the ICL/Stockline case suggested this sanction, stating: "This system punishes those that benefit the most from corporate offending (owners and shareholders) and avoids redistribution of corporate punishments to the most vulnerable groups. Such a system could greatly improve corporate criminal accountability."

Ms Adamson said the fine in the ICL/Stockline case amounted to just £50,000 per death, while in England there had been cases involving fines of £10 and even £2 because companies persuaded courts they would be unable to pay. Even in the case of the Transco blast in Larkhall the £15m fine represented just 2% of the company's profit.

Mr Wilson said he had received informal support from the government and expected strong support also from other sides in the parliament once his consultation was completed and the Bill was brought forward.