Directors’ liability
Being a director means making decisions, including when interests conflict or the company is under pressure. As long as things are going well, risks often remain in the background. But in the event of financial problems, disputes with creditors or bankruptcy, the question may arise whether a director is personally liable.
The law assumes that directors must have room to do business. Not every disappointing decision therefore leads to liability. Personal liability may only arise if a director can be seriously personally blamed.
When does directors’ liability arise?
Directors’ liability can arise in different ways. A director may be liable towards the company for improper management. In bankruptcy, the trustee also investigates whether there are grounds to hold directors liable for the deficit in the estate. For example, late filing of annual accounts or inadequate administration may play an important role.
Creditors can also hold a director personally liable. This may be the case, for example, if the director entered into obligations while knowing, or having reason to know, that the company would not be able to fulfil them. Special rules also apply in relation to the Tax Authorities and industry pension funds. In such situations, it is important to report inability to pay in a timely and correct manner.
Advice on directors’ liability
LVH Advocaten helps directors, companies and creditors with questions about directors’ liability. We assess the facts, map out the risks and advise on the best approach. We also guide directors through financially difficult periods, so that decisions are made carefully and liability risks are limited as much as possible. Because several lawyers at our firm have experience as trustees, we know how these situations are assessed in bankruptcy. Are you being held liable as a director, do you want to hold a director liable or are you uncertain about your position? Feel free to contact us. We will think along with you quickly and practically
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SPECIALIZED LAWYERS
These are our lawyers who specialize in this area.
Bouwe Bos
Peter de Graaf
David Harreman
Anouk van Houdt
Jamie Janssen
Laura Kleijne
Jacolien Leuvenink
Gentia Niesert
Ben van Nieuwaal
Richard Ouwerling
Mike Pfeifer
Hans Rijntjes
Rob Steenhoek
Peter Verheijden
Carolina Corijn
Legal assistant
+31 (0)10 209 27 52
corijn@lvh-advocaten.nl
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Anna-Rhodé van den Dool
Ina Erwich
Sebastiaan Knook
Secretary
+31 (0)10 209 27 64
knook@lvh-advocaten.nl
(more…)
Irene Nuijen
Administrative Assistant
+31 (0)10 209 27 50
nuijen@lvh-advocaten.nl
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Carola Plomp
Secretary
+31 (0)10 209 27 75
plomp@lvh-advocaten.nl (more…)
Claudia Rondberg
Receptionist
+31 (0)10 209 27 77
rondberg@lvh-advocaten.nl
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Bram van Ruijven
Legal assistant aviation
+31 (0)10 209 27 64
vanruijven@lvh-advocaten.nl
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Maxime Visser
Manager backoffice
+31 (0)10 206 17 84
visser@lvh-advocaten.nl
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Sebastiaan Knook
Legal assistant aviation
+31 (0)10 209 27 52
knook@lvh-advocaten.nl
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Annique Wennekes
More about bankruptcy
How does a purchase/contracting agreement work in real estate?
What is a purchase/contractor agreement? When parties agree that one of them will provide a piece of land and construct or finish a building on it for a fee, there is a contract for the purchase of the land on the one hand and a contract for work on the other hand with regard to the building. The part relating to the purchase of the land is governed by the legal rules of sale. On the part that relates to contracting work (building and delivery), the rules of contracting work apply. Therefore, it does not make much difference in practice whether one speaks of two linked contracts (purchase and contracting) or of one compound contract to which the rules for purchase and the rules for contracting apply in part.
What are the rights, obligations and liabilities of contractors and principals in contracting work?
A construction assignment to a contractor is considered a contract for work. This is an agreement whereby the contractor, on the instructions of the client - outside of employment - realizes and delivers a work of material nature. The legal relationship between the client and the contractor is - unless otherwise agreed - governed by the statutory rules for contracting work.
What are the rights, obligations and liabilities of clients and consultants in the commission agreement in a construction process?
At the start of a construction project, a client will often engage an architect, engineer or consultant to help him with the design (hereafter: 'consultant'). The legal relationship between the client and his consultant is - if nothing else has been agreed - governed by the legal rules for the commission contract. These legal rules can be found in the first section of title 7.7 of the Dutch Civil Code (art. 7:400 ff. of the Civil Code). The summary statutory regulation has a general and open character and is largely of a regulatory nature. It is therefore common for parties to make further agreements.
