This post provides an in-depth overview of the legal framework surrounding the misuse of corporate assets in Croatia, focusing specifically on criminal liability as established under current Croatian law as of 2025. All analysis is directly based on official legislation and offers practical insights for international business owners, compliance teams, and investors considering operations in Croatia.
Criminal Liability for Misuse of Corporate Assets in Croatia
The misuse of corporate assets—known locally as zloupotreba povjerenja u gospodarskom poslovanju (abuse of trust in business operations)—is regulated under Croatian criminal law. This legal construct is mainly governed by Article 246 of the Kazneni zakon Republike Hrvatske (Criminal Code of the Republic of Croatia). The law imposes clear criminal consequences for individuals who use company property, funds, or assets in ways contrary to the interests of the company or for personal benefit.
Overview of Key Legal Provisions
| Country | Criminal Liability | Law Reference | Article | Law Title |
|---|---|---|---|---|
| Croatia (HR) | Yes | Kazneni zakon Republike Hrvatske | Article 246 | Abuse of Trust in Business Operations |
This legislation makes individuals criminally liable if they are found to have:
- Misappropriated company funds or assets for personal use or unauthorized purposes
- Violated their duty of trust or fiduciary responsibility towards the company
- Engaged in other conduct defined as abusive under Article 246
Implications for Directors, Managers, and Corporate Officers
In 2025, anyone holding fiduciary duties within Croatian companies—such as directors, managers, or other responsible officers—should be particularly vigilant. Under Article 246, breach of trust offenses are subject to criminal investigation and prosecution. Penalties can be significant, including potential custodial sentences, depending on the scale of the misuse and the harm caused to the company.
It is also worth noting that the existence of criminal liability means companies operating in Croatia must ensure their internal controls, compliance protocols, and asset management systems meet Croatian legal requirements. Failure to do so can expose both the company and responsible individuals to serious legal risk.
Extracted Data Table: Criminal Liability for Misuse of Corporate Assets (2025)
| Provision | Value |
|---|---|
| Criminal Liability for Misuse | Yes |
| Reference Law | Kazneni zakon Republike Hrvatske |
| Relevant Article | Article 246 |
| Offense Name (HR/EN) | Zlouporaba povjerenja u gospodarskom poslovanju / Abuse of Trust in Business Operations |
Accessing Official Legal Resources
Full statutory texts and further guidance can be found via the official Croatian government portal. It is strongly recommended for legal teams and compliance officers to consult updated versions of the law directly from government sources.
Pro Tips: Ensuring Compliance in Croatia
- Establish Robust Internal Controls: Ensure all asset and fund movements within the company are tracked and supported by documentation consistent with Article 246 standards.
- Provide Regular Training: Make sure directors and key employees understand their fiduciary duties and the criminal risks associated with asset misuse under Croatian law.
- Conduct Periodic Audits: Engage in regular audits to detect early signs of misappropriation or breach of trust, and demonstrate compliance efforts in case of government review.
- Maintain Clear Governance Structures: Assign responsibilities transparently and ensure the decision chain for asset use is clearly documented and accessible.
In summary, the Croatian legal system imposes clear criminal liability for misuse of corporate assets, primarily under Article 246 of its Criminal Code. Directors and officers should be alert to these obligations, given that these measures are actively enforced as of 2025. Responsible asset management, ongoing compliance training, and reliable audit processes are essential safeguards against liability for both individuals and companies considering Croatian business activity.