Directors’ liability is once again at the forefront of legal debate, particularly in its intersection with criminal law.
The increasing expectations surrounding standards of care and loyalty in corporate management are contributing to a redefinition of the boundary between legitimate business judgement and conduct that may give rise to criminal liability.
In this context, issues such as the protection of the company’s interests, the generation of economic harm, and the degree of involvement in management decisions take on particular significance.
In opinion pieces published in El Economista, Eduardo de Urbano Castrillo, Of Counsel at Kepler–Karst Law Firm and former judge, examines when the manner of management may amount to a criminal offence, as well as how liability is attributed in cases of breach of trust (administración desleal), addressing the complexity of such scenarios in a corporate setting.
The analysis considers, on the one hand, situations in which certain management decisions may depart from the duties of care and loyalty, causing material harm; and, on the other, the complexity of attributing liability within corporate structures, where close attention must be paid to each individual’s actual level of involvement.
An approach that underscores the importance of precisely understanding the legal scope of directors’ duties in an increasingly demanding environment.
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