Directors' Liability
The general principle is that directors of private and public limited companies are not personally liable for actions taken on behalf of the company. However, personal liability may arise if a director fails to properly perform their duties. In practice, this often occurs when a director enters obligations that they knew – or should have known – the company would be unable to meet. As such, liability represents a real and significant risk for directors, supervisory board members, and internal supervisors. Creditors, insolvency receivers, or the legal entity itself may hold these officers personally liable for misconduct or mismanagement.
Our approach
Our Corporate Litigation & Investigations team advises and represents both executive, supervisory, and regulatory directors, as well as parties bringing claims against them. Where possible, we seek to avoid litigation by pursuing an amicable settlement. However, when settlement efforts fail, we provide full legal support to executive, supervisory, and regulatory directors – and their counterparties – throughout court proceedings.
What can you contact us for?
Our team advises and, where necessary, litigates in matters such as:
- Risks faced by directors and supervisors during corporate restructuring
- Liability risks for directors and supervisors of distressed companies
- Directors, supervisory board and regulatory supervisor liability
- Actions disadvantaging creditors
- Mismanagement and poor corporate administration
- Incorrect, misleading, or late filing of financial statements
Who do we work for?
Our team acts for directors, supervisors, auditors, companies, creditors, shareholders and receivers.
