- Category: Legal representatives
Corporate assets for French Director’s
Of course, it’s always possible to make mistakes in terms of managing assets when running a company. However, when a director intentionally harms the company, that behavior is referred to as “misuse of corporate assets”. Here’s what you should know about it!
Who can be concerned by misuse of corporate assets?
Any executive or director of a French commercial company can be concerned. It’s also worth noting that potential accomplices can be sanctioned as well.
What are the characteristics of this misuse?
The main criteria is that the behavior of the director forced the company to take disproportionate risks for no legitimate reason. Though, having a third party use the assets of the company in the name of personal gain is reprehensible as well.
This is why a director that receives a disproportionate salary, to the point of endangering the company itself, can be guilty of misuse of corporate assets.
What are the sanctions?
The director can receive a fine of up to 375 000 €, and go to jail for up to 5 years, so it’s worth paying attention! They can also have to pay additional damages to the company.