Abuse of corporate assets in French law, applicable texts and sanctions, should the criminal route be used? The Paris business criminal law lawyer answers

Introduction

Misuse of corporate assets is a criminal offence that can be committed by natural or legal persons. It is punishable by criminal and civil penalties. In this context, is it necessary to use the criminal route? What are the applicable texts and the sanctions incurred? The business criminal law lawyer in Paris answers these questions.

What is abuse of corporate assets?

Misuse of corporate assets is a criminal offence which consists of using goods or services for personal or illegal purposes. It can be committed by natural or legal persons. The goods or services may be tangible or intangible, funds, services or information.

Applicable texts

The offence of abuse of corporate assets is governed by the French Criminal Code. Articles L. 241-1 et seq. of the Commercial Code define the offence and provide for criminal and civil penalties.

Penalties incurred

The penalties for abuse of corporate assets are as follows:

• A prison sentence of up to 5 years and a fine of up to €375,000 for individuals.
• A fine of up to €1,500,000 for legal persons.
• A ban on professional activity of up to 10 years for natural persons.
• A ban on professional activity of up to 5 years for legal persons.

In addition, persons convicted of abuse of corporate assets may be required to repay sums unduly received.

Should criminal proceedings be used?

The use of the criminal route is necessary to punish the abuse of corporate assets. Indeed, the offence is punishable by criminal and civil sanctions. Criminal sanctions are necessary to deter people from committing this type of offence and to protect the interests of the victims.

However, it is possible to use civil proceedings to recover sums wrongly paid. Civil proceedings are quicker and cheaper and more manageable than criminal proceedings.

Conclusion

Misuse of corporate assets is a criminal offence that can be committed by natural or legal persons. It is governed by the French Commercial Code and punishable by criminal and civil penalties. The use of criminal proceedings is necessary to punish the abuse of corporate assets and protect the interests of the victims. However, it is possible to resort to civil proceedings to recover sums wrongly received.

Proceedings before the Paris judicial court