Liability of manager
Questions concerning the liability of legal persons in private and public law for either wrongful acts or negligence on the part of their officers are part of the field of company law. Joint stock companies are legal persons and they need to have individuals who act for them and on their behalf. Depending on the legal form of such companies these tasks and responsibilities are performed by managing directors in the case of limited liability companies under German law („GmbH“), by members of the board of directors or by the members of the supervisory board of a joint stock company (‚AG“). This group of persons who are frequently referred to as „managers“ is subject to a variety of liability risks as they are doing their jobs. This commences already at the point where companies are being founded (catchword acting persons’ liability, adverse balance liability). These liability risks continue to exist throughout the period of the company’s productive activities (catchword: principle of legality, organizational duties, duty to take due care, obligation of loyalty). Situations where liability risks become particularly virulent and dangerous arise in the case where a company is facing a crisis (duty of supervision, duty to file a bankruptcy petition). In numerous cases a manager finds himself faced with the threat of personal liability. He is bound to – frequently without being aware of any personal fault – assume liability with his privately-owned money for mistakes of the company or of his co-executives. In addition it also happens quite frequently that companies are faced with the question of whether they can have recourse against their managers for the damage which was caused by these managers. The fact that these risks may be covered by an appropriate insurance (catchword: D&O insurance) is frequently unknown.
Our office is well versed and will give you qualified advice and support and it will also represent you whenever any of these situations arise. In addition we will, upon request, offer instruction courses so that you and your company will be given individualized information concerning problems of liability and strategies of avoidance .