Corporate Corruption: When Do Gifts, Invitations, and Benefits Become a Criminal Offense?
Allegations of corruption are among the most sensitive issues for companies, executives and employees. Particular caution is required in the public sector, but also in connection with state-affiliated companies. In practice, corruption cases often begin in an inconspicuous manner: an exclusive dinner, repeated invitations to events or the reimbursement of travel expenses. What initially appears to be ordinary relationship-building can, under certain circumstances, have criminal implications. Payments to intermediaries, consultants or foreign business partners are also increasingly being scrutinized by investigative authorities. At the same time, the requirements for internal compliance systems at Austrian companies are continuously rising.
Cybersecurity as a Management Responsibility: When Are Corporate Directors Liable for “Hacker Attacks”?
In modern corporate governance, the question is no longer whether a company will be targeted by cybercriminals, but only when this will happen. The number of successful cyberattacks is also increasing. For managing directors (GmbH), executive board members, and supervisory board members (AG), this brings a topic into focus that extends far beyond the IT department alone: personal liability for deficiencies in cybersecurity.
Transactions with the own Company – Self-Dealing: When Do Contracts with Oneself Become a Liability Trap?
In theory, it sounds simple: the managing director manages the affairs of a limited liability company. In doing so, he must always act in the best interests of the company. In practice, however, managing directors are often involved in multiple companies. The managing director of a manufacturing company may also be the private lessor of the necessary production facility or the managing director of a distribution company that resells the products.
Managing Director Liability – Business Judgment Rule
Managing directors constantly face critical business decisions that shape the success of their companies. The economic outcome of these decisions is often uncertain by nature. Investments, strategic realignments, and everyday business operations all involve both opportunities and risks. Effective risk management and well-informed decision-making are therefore essential for sustainable business growth and long-term corporate success.
Austrian corporate law recognizes this business reality and does not hold managing directors liable for every incorrect decision. Instead, it provides an important legal safeguard: the Business Judgment Rule.
This principle clarifies that liability does not depend on whether a business decision ultimately leads to economic success or failure. Rather, the decisive factor is how the decision was made.