Given Austria’s well-known tax complexity and robust regulatory standards, understanding the legal framework for misuse of corporate assets is crucial for anyone involved with Austrian corporations. This article directly examines the key legal provisions governing corporate asset misuse in Austria for 2025, focusing on criminal liability and its statutory foundation.
Legal Definition and Statutory Reference: Misuse of Corporate Assets in Austria
In Austria, the misuse of corporate assets falls under the scope of criminal liability, in line with the country’s commitment to upholding fiduciary responsibilities within corporate structures. The relevant statutory reference is:
| Criminal Liability Applicable | Legal Reference (2025) |
|---|---|
| Yes | 7 153 StGB (Untreue) – Austrian Criminal Code, Section 153: Breach of Trust |
According to Section 153 of the Austrian Criminal Code (Strafgesetzbuch, StGB), a breach of trust (“Untreue”) occurs when a person entrusted with another’s assets intentionally abuses their authority, resulting in damage to the asset owner, often the corporation or its shareholders. This is the central provision that holds individuals criminally responsible for the misuse or misappropriation of corporate resources.
The Austrian Legal Standard for Breach of Trust
The core elements of misuse of corporate assets (Untreue) in Austria require that:
- There is an entrusted duty or authority over corporate assets.
- This authority is intentionally abused (for example, assets are used for purposes other than approved corporate purposes).
- This results in financial harm to the corporation, its shareholders, or other asset owners.
Importantly, the law applies not only to officers and directors, but to any individual who has legal access to, and authority over, the corporation’s property.
Liability and Enforcement in 2025
The presence of direct criminal liability in Austria (as affirmed by the current legal data) means that individuals misusing corporate assets can be subject to criminal prosecution under Section 153 StGB. Sanctions can include fines and imprisonment based on the value of damage and degree of intent, reflecting Austria’s consistently strict approach to corporate governance and asset protection.
Key Compliance Facts for 2025
- Criminal liability is established and actively enforced; this includes both directors and managers (or any entrusted party).
- Breach of trust encompasses both direct theft/misappropriation and indirect abuses, such as approving non-corporate expenditures.
- Austria’s legal framework provides for investigation by public prosecutors, often initiated by shareholder or third-party complaints.
Summary Table: Misuse of Corporate Assets Policy (Austria, 2025)
| Provision | Details |
|---|---|
| Criminal Liability | Yes (Section 153 StGB) |
| Statutory Reference | 7 153 StGB – Breach of Trust |
| Primary Trigger | Intentional abuse of authority resulting in harm to corporate assets |
| Scope of Application | Any individual with legal power over corporate property |
| Sanctions | Criminal penalties including fines and possible imprisonment |
Pro Tips: Staying Compliant with Austrian Corporate Asset Rules
- Ensure all asset-related transactions and authorizations are formally documented and traceable to corporate purposes.
- Regularly review internal policies and train management on Austrian standards for fiduciary duty and asset protection.
- If in doubt about the permissible use of corporate resources, consult local legal counsel or refer to official guidelines on the Austrian government’s main website: www.oesterreich.gv.at.
- Be proactive about transparency; promptly address shareholder questions regarding asset flows to preempt potential allegations of misuse.
In summary, Austria’s approach to misuse of corporate assets in 2025 is firmly grounded in criminal law, with clear statutory requirements and regular enforcement. Section 153 of the Austrian Criminal Code creates a high standard of conduct for all individuals managing corporate resources. For anyone involved in Austrian business, a strong understanding of these requirements is not only advisable, but essential to avoid significant legal consequences and to maintain effective corporate governance.