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“Abuse of corporate assets” refers to an offense committed by a director or manager of a commercial company in Morocco. This offense involves the misappropriation of company property, including movable and immovable assets, as well as financial receipts. Perpetrators use their corporate powers for personal gain or other purposes contrary to the company’s best interests. Moroccan business law has established various measures to prevent and penalize such actions.
This article explores the intricacies of abuse of corporate assets in Moroccan law, its implications, and the legal repercussions faced by those who commit this offense.
The offense of abuse of corporate assets can be attributed to the company’s managers or any person who has exercised management in place of legal representatives, whether directly or indirectly. This includes partners of the company who have not been officially appointed as managers but have participated in the company’s management.
To identify abuse of corporate assets, several constitutive elements need to be considered, namely the legal, material, and moral elements of the offense.
The legal element pertains to the specific laws that apply, while the material aspect involves the misappropriation of goods or credits for personal purposes or acts supporting economic interests other than those of the company. The moral component considers the fraudulent intent or the intention to harm the company’s interests.
Moroccan law provides for a prison sentence ranging from 1 to 6 months, along with a fine of between 100,000 and 1,000,000 dirhams for members of management, administrative bodies, or managers of joint-stock companies. For managers of other legal forms, such as limited liability companies, imprisonment of 1 to 6 months or a fine of between 10,000 and 100,000 dirhams is provided.
Article 384 of Law 17-95 addresses the sharing of fictitious dividends, fraudulent inventories, concealment of true financial statements, and the misuse of company assets and credits for personal purposes or interests contrary to the company’s objectives. Directors found guilty of such actions will face the penalties outlined in the law.
Company directors and managers must use their authority for the company’s proper functioning and not act contrary to its interests. They must not use their powers to favor another company at the expense of the one they represent. Any violation of these obligations can lead to legal repercussions, including fines and imprisonment.
Moroccan law places significant emphasis on the responsibilities of company directors and managers across all legal forms. While they hold substantial power in the day-to-day operations and decision-making processes, they are also legally accountable for their actions. As such, it is crucial for directors and managers to be vigilant in upholding the company’s best interests and exercising their authority responsibly.
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