For international entrepreneurs and digital nomads, navigating the legal landscape around corporate asset management in Egypt can feel like a maze of state-imposed hurdles. If you’re frustrated by the risk of criminal liability and the opaque nature of local regulations, you’re not alone. In 2025, understanding the precise legal framework for misuse of corporate assets in Egypt is essential for anyone seeking to optimize their business operations and protect their personal freedom.
Legal Definition and Criminal Liability for Misuse of Corporate Assets in Egypt
Egypt takes the misuse of corporate assets seriously, imposing criminal liability on individuals found guilty of such offenses. The cornerstone of this legal framework is Article 115 bis of the Egyptian Penal Code (Law No. 58 of 1937), as amended. This provision is the primary reference for prosecuting cases where company assets are used for personal gain or outside the scope of legitimate business activities.
Key Statutory Reference
| Legal Provision | Criminal Liability? | Year Applicable |
|---|---|---|
| Article 115 bis, Egyptian Penal Code (Law No. 58 of 1937), as amended | Yes | 2025 |
What Constitutes Misuse of Corporate Assets?
Under Article 115 bis, misuse of corporate assets typically involves the unauthorized use of company property, funds, or resources for personal benefit or for purposes not aligned with the company’s interests. This can include:
- Diverting company funds to personal accounts
- Using corporate vehicles or equipment for non-business activities
- Appropriating intellectual property or confidential information for personal projects
In Egypt, such actions are not just civil matters—they carry criminal consequences, which can include fines and imprisonment.
Pro Tip: How to Avoid Criminal Liability in 2025
- Establish Clear Internal Policies: Draft and enforce internal guidelines on asset usage. Ensure all employees and directors are aware of what constitutes legitimate use.
- Implement Robust Oversight: Set up regular audits and transparent reporting mechanisms to detect and prevent unauthorized asset use.
- Document Everything: Keep meticulous records of asset allocation, usage, and approvals. In the event of an investigation, documentation is your best defense.
- Seek Legal Counsel: Consult with local legal experts to ensure your company’s practices align with Article 115 bis and any recent amendments as of 2025.
Mini Case Study: The Cost of Non-Compliance
Consider a scenario where a company director in Cairo uses company funds to finance a personal real estate purchase. Under Article 115 bis, this action is prosecutable as a criminal offense. In 2025, Egyptian courts continue to enforce these provisions strictly, with penalties that can include both financial restitution and jail time. The reputational and operational risks for international entrepreneurs are significant—making compliance not just a legal obligation, but a strategic necessity.
Summary: Key Takeaways for 2025
- Egypt enforces criminal liability for misuse of corporate assets under Article 115 bis of the Penal Code.
- Unauthorized use of company property, funds, or information can result in prosecution, fines, and imprisonment.
- Proactive compliance—through internal policies, oversight, and documentation—is essential for risk mitigation.
For further reading on Egyptian corporate law, consult the official English translation of the Egyptian Penal Code and stay updated with the latest amendments as of 2025.