The Monaco Economic Board (MEB) and the Order of Chartered Accountants of Monaco have sounded the alarm on the growing legal risks faced by company directors, during a conference that drew around 100 business leaders at the Novotel Monte-Carlo.

Held on Tuesday 30th September, the session focused on ‘The Criminal Liability of the Business Leader’, a timely subject given recent changes to Monaco’s corporate modernisation laws and new directives from the Monegasque Financial Markets Authority.

Law firm 99 Avocats, represented by partner Erika Bernardi and colleagues Patricia Kemayou Mengue and Paul Tomatis, outlined how directors may be held criminally liable not only as official (“de jure”) directors but also as shadow (“de facto”) directors. They warned that companies themselves can also face prosecution alongside their managers.

Crimes most frequently seen

The lawyers detailed the offences they most often encounter, ranging from involuntary injury and bankruptcy to fraud, breach of trust, forgery, VAT and corporate tax evasion, and money laundering. Using real-life examples, they stressed how directors can easily underestimate their own exposure.

“These offences are spread across various laws and regulations, making it challenging for business leaders to fully understand the risks involved,” said Maître Bernardi.

Prevention through compliance

The speakers underlined that preventive steps are vital, including the delegation of authority and the creation of robust compliance systems. Such measures are increasingly necessary as Monaco continues to align its regulations with international standards.

Audience engagement throughout the event reflected the high level of concern among business leaders. For the organisers, the initiative is part of a broader mission to ensure that companies in the Principality grow not only successfully but also responsibly.

“This partnership aims to equip Monaco’s entrepreneurs with the knowledge to anticipate and mitigate risks,” said Stéphane Garino, President of the Order of Chartered Accountants. Guillaume Rose, CEO of the MEB, added that the organisation would continue to facilitate exchanges on issues central to the Principality’s economic resilience.

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Photo source: MEB