Disloyal management criminalised in the draft bill of reform of the Spanish Criminal Code

The Spanish Minister of Justice has submitted a draft bill to reform the Spanish Criminal Code, which is currently pending a report from the State Council. The draft bill increases the penalties imposed on the most serious offences, criminalises new offences and punishes recidivism.

The draft modifies the wording of the "disloyal management" criminal offence. This offence is committed where the manager of a third party's assets causes, as a result of abuse or disloyalty, damage to those assets or creates circumstances where there is a risk of loss. This offence is understood to occur in the following scenarios: the unauthorised sale of goods for lower than market value; providing credits without demanding collateral; contracting services that are ultimately not used; failure by managers to collect debts or the performance of unauthorised transactions that have an impact on the managed assets. Breach of the trust between the manager and the persons whose assets are managed is therefore a necessary requirement.

This criminal offence will be established in a single article and a distinction will be drawn with embezzlement and fraud. The regulation of corporate crime will therefore be simplified.

Judges are able to impose temporary bans on public officers as injunctive relief

The Spanish Minister of Justice has allowed judges to temporarily disqualify public officers from their office if they have been charged in criminal proceedings as a form of injunctive relief. This is one of several measures that the Minister has proposed to combat corruption among the public administrations. He has also announced that the investigation period in cases of corruption will be limited.

These measures will be included in the new Criminal Procedure Act, currently being prepared to reform existing legislation.