Corporate officers of French companies (CEOs, members of a board of directors, etc.) may incur civil or criminal liability for various acts or omissions.
Civil liability
Civil liability may be incurred, inter alia, for actions or omissions which:
- violate applicable law or the company’s bylaws, or
- constitute acts of mismanagement (“faute de gestion”).
Criminal liability
Criminal liability may be incurred, inter alia, for:
- embezzlement,
- abuse of corporate position or votes,
- distribution of fictitious dividends,
- presentation of false accounts.
The above acts, if committed intentionally, are punishable by up to five years imprisonment and a fine up to 375.000€. Intention may however be inferred from the corporate officer’s knowledge of the damage caused to the company by such acts.
