If mistakes are made in companies, managers are held accountable today more than ever before. Directors' and officers' liability is therefore a serious risk for managing directors, members of executive boards and supervisory bodies. The potential claims for damages alone can be existentially devastating for those affected.
Managers and their companies can prevent liability cases in advance by implementing legally compliant structuring measures. If a claim occurs nevertheless, the legal and economic outcome can be significantly influenced by a smart approach. Whatever the case, our team will be at your side.
In connection with managers, directors and senior executives, breaches of duty and liability often involve personal liability risks. That means: If damage has occurred as a result of conduct in breach of duty, liability may be assumed vis-à-vis the company or, in the case of external liability, vis-à-vis third parties. This liability applies jointly and severally, personally and to an unlimited extent - even in cases of only minor negligence.
Of particular relevance in this context is the fact that the burden of proof is shifted towards the acting manager: the company only has to prove (within the framework of internal liability) that there may have been a breach of duty and that it has suffered damage as a result. It is then up to the persons concerned to state and prove that they have complied with the standard of care directed at them; this also applies even after they have left the company (limitation periods for damages arising from breaches of duty of care of up to ten years!).
Personal liability generally applies to the entire private assets of the managers concerned. Depending on the amount of damage, this can be ruinous.
Caution! Even an honorary office is not immune to this - activities in foundations and nonprofit institutions are also subject to management liability.
The standards of the "Business Judgement Rule", which were established by German courts and later codified in law, regulate the aspects of dutiful conduct on the part of managers, executive bodies and senior executives, as well as the possibilities of exemption from the aforementioned duties - with the exception of the duties of legality which must be complied with by law - in favor of the persons concerned. They have to act:
Affected persons should seek professional help immediately and without delay in order to be able to effectively defend themselves against impending or asserted liability claims. Running limitation periods play an important role here. It is also vital to note that preventive measures must be taken in advance and are also part of the company's policy. These include - in addition to the necessity of dutiful conduct - among other things:
Our experts competently advise and represent board members, supervisory officers, managing directors, senior executives as well as authorized signatories in areas of due diligence and in the event of any liability claims. We support you with:
As a manager, do you want to protect yourself against possible liability claims? A damage event has already occurred and you would like to mitigate the impact? You need advice regarding directors and officers liability insurance? Your contact persons for all questions regarding manager's and director's liability are
The easiest way to reach us is by e-mail (firstname.lastname@example.org) or by phone (+49 69 76 75 77 80). Feel free to contact us with your questions!