Directors' liability

As a director of a private limited liability company, you may under circumstances be held privately liable for debts of that same company, for example by a creditor of the company or another third party or by a shareholder. The third party can only do so if he has suffered damages as a result of your wrongful acts, of which you can also be seriously blamed. This may be the case, for example, if you have entered into obligations on behalf of the company while you knew or should reasonably have understood that the company would not be able to meet its obligations and has no recourse.

In a bankruptcy situation, it is common for an administrator of a bankrupt company to hold the director(s) or de facto policymakers personally liable for the company's debts. This is possible if the management has improperly performed its duties and it is plausible that this is a major cause of the bankruptcy. Improper management occurs in any case if the management board fails to fulfill its accounting obligation or fails to file the annual accounts (on time). In that case, it is suspected that this is a major cause of the company's bankruptcy. The claims involved can be enormous. Based on their experience as trustees in bankruptcies, TRC's insolvency lawyers are perfectly capable of assessing the value of such claims and putting up a reasoned defense against them. Your interests come first.