There is no specific legal provision related to the liability risks threatening management in Algeria in the corporate crisis. However, the management remains liable (civil and criminal liability) toward the company, third parties, and the employees even during crisis period.
Thus, in a joint stock company, board members assume the exclusive civil and penal liability of their management. The board members assume the civil liability if they fail to comply with the regulations applicable to joint stock companies or the company’s Articles of Association. Such liability may be called upon by a third party or the shareholders.
As to the penal liability, it is applicable in the event of violation of the principles related in particular to control, dissolution and winding-up of a joint stock company.
The chairman of the board has the same civil and penal liability as any other board member. However, the general manager is liable towards the company and third parties in relation to its own management action or non-action. His/her liability is limited to the powers granted from the chairman of the board (similarly, he/she may be held liable in the event he/she exceeds the powers granted by the chairman of the board). Moreover, he/she may be held liable in the event of composition or bankruptcy proceedings when he/she is found liable for having undertaken acts of commerce for its personal interest or has used the company’s property as his/her own property or has continued to manage an unprofitable company which has led to a suspension of payment of the company’s creditors.
Moreover, in relation to the employees, article 5 of the Labour Code has introduced the general principle of “fundamental right of the employees in terms of health, safety and occupational medicine”.
In addition, pursuant to the law n ° 88-07 dated January 26, 1988, related to health, safety and labour medicine, the employer must ensure employees’ health and safety. In this context, taking into account the above general rules, the employers must take preventive measures by informing the employees and their representatives on the evolution of the situation and the rules to be followed to protect the employees’ health.
The employers must therefore endeavour to implement risk prevention measures and communicate clearly to the employees’ health and safety instructions to avoid the spread of the virus or any other contamination between employees in the performance of their duties.
Finally, it should be noted that the employees have also the obligation to observe the health and safety measures taken by the employer in accordance with the regulations and failure to comply with the said instructions may qualify as a disciplinary fault.