Lawyers specialized in directors’ liability
Lawyers Amsterdam directors’ liability
As a director of a company, you take risks. Risks in the interest of the company. Sometimes a choice turns out the wrong way: you enter into an obligation on behalf of the company, which the company can no longer bear. In the first place, it is the company that is liable, but under certain circumstances you will be held liable yourself. Or perhaps you are concerned about a choice that you are not sure could be a problem. Our lawyers have years of experience in litigating on directors’ liability and can determine your position well.
Director acts on behalf of the company
The director of a B.V. or N.V. acts on behalf of the company and, for example, enters into lease agreements and concludes agreements with suppliers. If the company does not meet its agreements, the company will be called to account. Sometimes, however, the company appears to offer no recourse or – worse – the company goes into bankruptcy. All the focus will then be on the members of the board.
Internal directors’ liability
If the director has not performed his duties properly, the company can hold the director liable. The B.V. (or N.V.) will therefore hold the director liable. This can be done on countless grounds. It will often be the case that the director has taken too great of a financial risk.
External directors’ liability
With respect to external directors’ liability, directors are liable for damage suffered by third parties through the actions of the directors. The bar is set high in that context. Just clumsy entrepreneurship, for example, is no reason for liability. Entrepreneurship is taking risks, but directors’ liability is about really having a serious personal blame. For example, in the situation where the director knew that he entered into obligations on behalf of the company, which the company could not actually bear. Or if, for example, the director is very reckless with the assets of the company.
The board is jointly liable
Starting point is that the board as a whole is liable. However, in a possible procedure one director can demonstrate that a certain behavior is not part of his duties and that he/she cannot be blamed.
Directors’ liability insurance
Directors’ liability insurance covers some of the mistakes entrepreneurs make. However, it is important to read the policy carefully and to seek legal advice. We can help you with this, whereas prevention is better than cure.
Lawyer specialized in directors’ liability
Our lawyers have years of experience in litigating on directors’ liability. Feel free to contact us.