Introduction

Matrix organization

Mergers by absorption

Risks related to the expansion of the scope of criminal liability of legal entities

Validity conditions

Proof of delegation

Exemption from individual liability of delegator

Attribution of offense to legal entity

Delegations of authority

Criminal risk management within business organizations

Complicity in crimes against humanity

Breaches of secrecy

Personal data breaches

Theft

Extortion

Blackmail

Fraud

Misappropriation

Receiving/concealment of unlawfully obtained property (recel)

Attacks on automated data processing systems

Money laundering

Misappropriation by public official (concussion)

Corruption and influence peddling

Unlawful acquisition of an interest

Favoritism

Forgery and use of forgeries

Violation of Criminal Code

Offenses under the Monetary and Financial Code

Offenses under the Commercial Code

Environmental Code violations

Offenses arising from other codes

Types of offenses

Offenses under the Criminal Code, the Commercial Code, or the Environmental Code, Criminal procedure

White Collar Crime (en cours)

Like all offenses, the distribution of fictitious dividends constitutes an intentional offense that requires the defendant's knowledge of the fictitious nature of the distributed dividends and the absence of an inventory or its fraudulent nature. The absence of an inventory or the establishment of a fraudulent inventory for the purpose of distributing fictitious dividends establishes de facto this …

Repression

Like all offenses, the distribution of fictitious dividends constitutes an intentional offense that requires the defendant's knowledge of the fictitious nature of the distributed dividends and the absence of an inventory or its fraudulent nature. The absence of an inventory or the establishment of a fraudulent inventory for the purpose of distributing fictitious dividends establishes de facto this knowledge , the mere observation of the violation, knowingly, of a legal or regulatory provision implying, on the part of  , the culpable intent required by Article 121-3, paragraph 1, of the Criminal Code .

The distribution of fictitious dividends is punishable by five years' imprisonment and a fine of EUR 375,000. The court may also impose on the company director the prohibition of civil, civic, and family rights from Article 131-26 of the Criminal Code, as well as the additional penalties of Article L. 249-1, such as the prohibition from holding a public office or engaging in the professional or social activity during or on the occasion of which the offense was committed, and from engaging in a commercial or industrial profession, directing, administering, managing, or controlling in any capacity, directly or indirectly, for their own account or for the account of others, a commercial or industrial undertaking or a commercial company.

If a management ban imposed by the criminal court can be combined with the declaration of personal bankruptcy, it is on the condition that its duration, combined with that of the ban, does not exceed the legal limit of fifteen years (Art. L. 653-11, para. 1, Commercial Code) and that the seriousness of the offenses and the situation of the manager require it .

The limitation period for the offense begins to run from the decision of the general meeting to distribute all or part of the profits in the form of dividends, which grants shareholders a right to them .

Furthermore, when there is a distribution of fictitious dividends, the shareholders are required to return to the company the irregularly distributed dividends (Art. L. 232-17 Commercial Code) .

The civil action, which belongs to all those who have personally suffered damage directly caused by the offense, cannot be initiated by a union in a procedure opened, on its complaint, on the grounds of distribution of fictitious dividends, as no harm to the collective interest of the profession has been found . However, a partner of a SARL (limited liability company) is admissible to exercise the civil action in this capacity as a partner to obtain compensation for their personal moral damage resulting from the moral constraints and harm to their reputation and honor suffered due to the defendant's criminal acts .

Cass. crim., 28 June 1989, LawLex202300002265JBJ; 22 January 1937, LawLex202300000800JBJ.

Cass. crim., 8 April 2010, 09-85.298, unpublished.

Cass. com., 24 May 2018, LawLex202300000327JBJ.

Cass. com., 19 September 2006, LawLex202200003074JBJ.

CA Riom, 13 September 2017, LawLex202300000178JBJ, which holds that the action for the recovery of irregularly received dividends by the partners, as provided in limited liability companies by Article L. 223-40 of the Commercial Code, is intended to be exercised either by the company itself represented by its managers, or by the corporate creditors, as long as the company is in bonis, or by the liquidator after the dissolution of the company.

Cass. crim., 11 May 1999, LawLex202300000326JBJ.

Cass. crim., 10 December 1990, LawLex202300000184JBJ.

White Collar Crime (en cours)

210. Repression

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

210. Repression

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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