According to Article 32 of the Greek Civil Service Code, public servants are prohibited from participating in any type of commercial company, such as partnerships, limited liability companies (EPE), or joint ventures. However, the law does not explicitly mention whether participation in a Private Company (IKE) is allowed or not—creating a legal ambiguity that calls for interpretation.
Clarification from Legal Opinions
This issue was clarified by Opinion No. 25/2015 of the Legal Council of the State (N.S.C.), which has been consistently followed and recently reaffirmed by the Ministry of the Interior (see document no. ΔΙΔΑΔ/Φ.69/261/οικ.723/13.01.2025). According to this opinion, public servants are prohibited from:
- Acting as managers of a Private Company (IKE), and
- Participating in an IKE by holding one or more company shares.
Why Is Participation in an IKE Prohibited?
The N.S.C. opinion is based on the fact that an IKE is a commercial company with legal personality, irrespective of the company’s purpose or whether it engages in profit-making activities.
Under Greek law, unless otherwise decided by the partners, an IKE is managed and represented by one or more managers, who may or may not be partners, and who have full authority to act on behalf of the company. Management is not exercised by a board of directors but directly by these individuals.
Absolute Prohibition on Management Participation
Article 32(2) of the Civil Service Code imposes an absolute prohibition on public servants from participating in the management of any commercial company. Exceptions to this rule exist only when explicitly provided by law. In the absence of such provisions, civil servants subject to this code may not undertake any management-related actions.
Comparison with EPE (Limited Liability Companies)
The N.S.C. also emphasizes that the IKE, in its general legal characteristics, has been structured based on the EPE model, where public servant participation is clearly prohibited. This analogy further strengthens the view that participation in an IKE, whether as a manager or shareholder, is also not permitted.
Conclusion
Public servants in Greece are not allowed to participate in a Private Company (IKE), either as managers or shareholders, due to the company’s commercial nature and the strict prohibitions imposed by the Civil Service Code. Legal exceptions must be explicitly stated by law; otherwise, the restriction applies fully.
