LIECHTENSTEIN Law and Practice Contributed by: Matthias Niedermüller, Alexander Milionis and Fabian Rischka, Niedermüller Attorneys-at-Law
murder, slave trade, blackmailing, kidnapping or robbery), which is punishable with a prison sentence of up to five years (Section 277 of the Criminal Code). Misappropriation Depending on the specific misbehaviour of the offender, the general term “misappropriation” can relate to different provisions of Liechtenstein criminal law. Embezzling an entrusted asset for oneself or a third person with the intention to unjustly enrich oneself or the other person is punishable with a prison sentence of up to ten years (Section 133 of the Criminal Code). Embezzling another per - son’s goods where the offender did not actively obtain said goods is punishable with a prison sentence of up to five years (Section 134 of the Criminal Code). Further, intentional abuse of powers (ie, the authority to dispose of another person’s assets or to oblige or represent another person) that damages the principal’s assets is punishable with a prison sentence of up to ten years. Abuse of power in this context means the breach of rules serving the protection of the assets of the other person (Section 153 of the Criminal Code). Relevance for Liechtenstein Owing to its liberal corporate law and its favour - able tax regime, Liechtenstein hosts a vast number of asset preservation and protection structures – in particular, foundations and trusts – as well as asset management relationships. This leads to a large number of legal entities being managed by professional trustees, board members, and other persons entrusted with the authority to represent a principal and dispose of other persons’ or entities’ assets. Commit - ting misappropriation as a professional trustee
is considered an aggravating circumstance by Liechtenstein courts. Misappropriation claims are highly relevant in the context of asset recov - ery in Liechtenstein. Fraud Claims in Liechtenstein Under Civil Law There are no specific provisions in Liechtenstein civil law dealing explicitly with fraud. Nonethe - less, fraud claims also play an important role in a civil law context and form a powerful basis for obtaining compensation. However, damaged parties can assert claims of different kinds. The main claims are as follows. Claims for damages Based on the general rule of Section 1293 of the Civil Code, a damaged party can assert claims for damages against the damaging party under the following circumstances: • material or immaterial damage is suffered by the damaged party; • damage is caused by an action or omission committed or made by the damaging party; • the damaging action or omission is commit - ted unlawfully – ie, in violation of a statutory or contractual provision (note: violations of Criminal Code provisions, in particular, qualify as such unlawful acts); and • personally culpable conduct by the damaging party. According to Liechtenstein law, all provisions intended to protect other persons’ assets are considered protective laws under Section 1311 of the Civil Code. Notably, most provisions of criminal law also qualify as protective laws; therefore, a damaged person can invoke the violation of protective laws in order to obtain full compensation from the damaging person, even without any contractual relationship. Thus, Sec -
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