For those managing or owning companies in Greece, it is critical to understand the current legal framework regarding the misuse of corporate assets. This post provides detailed, up-to-date information on Greece’s approach to criminal liability for directors and company officers who unlawfully appropriate company assets in 2025.
Overview of Misuse of Corporate Assets in Greece
Greek law imposes clear criminal liability on company directors—including sole directors or shareholders—for the misappropriation of corporate assets, regardless of third-party involvement. The primary legal basis for these offenses is outlined in Article 390 of the Greek Penal Code (Ποινικός Κώδικας), which specifically addresses the offense of embezzlement (απιστία).
Key Legal Framework Details (2025)
| Law Reference | Offense Covered | Applicability | Criminal Liability |
|---|---|---|---|
| Article 390 of the Greek Penal Code | Embezzlement (απιστία) | Company directors, including sole directors/shareholders | Yes (applies in 2025) |
Understanding Article 390: Embezzlement of Company Assets
Article 390 of the Greek Penal Code provides that company directors, or others entrusted with managing corporate property, can be held criminally liable for misappropriating assets belonging to their company. Notably, this provision applies even in the absence of prejudice against third parties, setting a firm standard for internal corporate conduct in Greece.
Criminal liability under this article typically arises when there is intentional misuse of company assets for personal benefit or for the benefit of third parties without proper authorization. The scope is broad, covering acts such as:
- Transferring company funds to personal accounts
- Using company property for private purposes without approval
- Unapproved loans to board members or related parties
Enforcement Priorities and Practical Impact
Greek authorities are tasked with investigating and prosecuting breaches of Article 390. Directors and officers should be aware that criminal sanctions can be imposed regardless of whether shareholders or outside parties raise a complaint. The focus for 2025 remains on maintaining transparency, fiduciary responsibility, and the proper use of assets to protect corporate and stakeholder interests.
Summary Table: Core Elements of Misuse of Corporate Assets Law in Greece (2025)
| Regulatory Element | Description |
|---|---|
| Primary Law | Article 390, Greek Penal Code (Ποινικός Κώδικας) |
| Offense | Embezzlement/misuse of corporate or company assets |
| Who Is Liable? | Company directors, sole directors, shareholders with management authority |
| Requirement for Third-Party Prejudice | Not required—liability applies even if no third party is directly harmed |
| Sanctions | Criminal (including potential imprisonment or fines, case-specific) |
Navigating Compliance: Pro Tips for 2025
- Maintain clear documentation for all company transactions and asset transfers, ensuring all approvals are properly recorded.
- Establish internal review protocols for expenses, loans, and benefits provided to directors or related parties to avoid conflicts of interest.
- Regularly educate management teams and directors on Article 390 compliance, updating guidance as legal interpretations evolve.
- Implement anonymous reporting channels to identify misuse early, helping demonstrate due diligence in corporate governance.
- Periodically consult legal counsel to audit and benchmark corporate asset management procedures against best practices in Greece.
Official Resources
For authoritative updates and more details on Greece’s legal framework, visit the Greek Ministry of Justice.
Understanding the scope and strictness of Article 390 is essential for anyone involved in company management in Greece. Directors face personal criminal liability for any misuse of corporate assets, even without outside harm. Maintaining robust internal controls, up-to-date documentation, and informed leadership remain the key aspects of effective compliance in 2025.