Abstract

Among the acts of fraud committed by corporate executives is the misappropriation of funds (abus de biens sociaux). This violation, contained in a specific provision in French law, seeks to protect the firm’s general interest (intérêt social). However the latter is not defined by the law. Is it the interests of shareholders, of the firm in general or of the firm against which the act of fraud has been committed? The law conflates it with the interest of the business as a legal entity. Accordingly, the interests to be protected reach beyond shareholders – in line with recent analyses and critiques of the agency theory. Taking the general interest into account in cases of misappropriation can also extend beyond the concept of a juristic person to cover the interests of the firm and its stakeholders.