Directors in Algeria may face civil liability risks for breach of law, violation of the company’s articles of association and mismanagement. The main sources of such liability are corporate law, employment legislation, environmental laws, tax laws and bankruptcy law.
Corporate law regulates the rights and obligations of directors towards the company and its shareholders. Directors must act within their authority as outlined in the company’s articles of association. If they exceed that authority or breach their duties, they may be held personally liable to recompense the company financially.
Employment legislation regulates the rights and obligations of directors towards the employees of the company. Directors must comply with the labor laws and social security regulations of Algeria. If they fail to do so, they may be held personally liable for any damages caused to the employees or the social security authorities.
Depending on the nature and severity of the violation, directors may face civil, administrative or criminal sanctions, including fines, imprisonment or disqualification.