German GmbH Managing Director Statutory Representation Mechanics
Managing directors possess absolute external authority under German law; internal expenditure limits create personal liability but cannot invalidate third-party contracts.
Untreue
Meaning
Criminal offenses involving misappropriation address the violation of a fiduciary duty to manage or protect the assets of another. This untreue is codified in the German Penal Code and serves as the primary mechanism for addressing financial misconduct in corporate settings. It requires both a position of power over assets and an action that results in a quantifiable loss.
Care Violation
The perpetrator must hold a special obligation toward the victim, such as that of a managing director to a company. An act of untreue occurs when this person exceeds their internal authority or misuses their legal power to the detriment of the firm. The law protects the capital and resources of the entity from being drained by those tasked with their preservation.
Value Measurement
Courts determine the presence of the crime by measuring the reduction in the total value of the assets involved. Taking excessive risks or paying out company funds for private purposes are common examples that lead to a charge of untreue. The damage must be real and measurable rather than a purely theoretical loss of future profit.
Financial experts often provide testimony to quantify how much the company’s net worth declined following the disputed transaction.
Penalty Grade
Conviction can lead to fines or imprisonment depending on the scale of the financial harm.