Tougher criminal liability for mismanagement

As a result of the amendment to the Criminal Code, a manager who abuses the powers granted to him or her or fails to fulfil the obligations incumbent on him or her and causes damage of more than PLN 5 million to the entity being managed commits an offence punishable by three to 20 years’ imprisonment. Causing damage greater than PLN 10 million is punishable by imprisonment from 5 to 25 years.

The stricter liability applies in particular to managers of medium-sized and large enterprises, in which, due to the scale of operations, many decisions may cause damage exceeding PLN 5 million.

It is therefore crucial to have a good analytical preparation of decisions taken, with particular emphasis on the assessment of business risk, especially as the case-law in such cases indicates that an entrepreneur should be prepared for all dangers arising from the specifics of economic turnover and be able, before taking any decision, to locate possible sources of risk.

If you have any questions, please contact:

Attorney at law
+48 91 886 24 01