Insolvency Law

As a law firm specialising in company and insolvency law, we have come to extensively advise and represent in the field of managing directors’ liability.

Lawsuits and claims for damages against managing directors are constantly on the rise. At the same time, case law has expanded the obligations of managing directors for years. Liability risks arise not only in the tax area, but also in the context of company insolvency. As the amounts in dispute in company insolvency may well be considerable, this often constitutes a threat to a managing director’s own financial existence.

The managing director of a GmbH (limited liability company) must always act with the diligence of a prudent businessman in the affairs of the company. Should the GmbH become insolvent, there is a reason for insolvency. In this case, the managing director must file for insolvency in due time. Furthermore, the managing director is liable under insolvency law for payments that led to insolvency.

Liquidity Planning & Continuation Forecast

Due to the new legal framework created by way of the introduction of the StaRUG (Act on the Stabilisation and Restructuring Framework for Businesses), there currently is a great deal of ambiguity in this area. Therefore, it is necessary that you as a managing director document your entrepreneurial decisions in detail and maintain a liquidity plan for a forecast period of 24 months. This in turn documents that your company is solvent. Furthermore, you should be able to prove that there is no over-indebtedness in your company. This requires a going concern forecast for a period of at least 12 months.

With many years of experience in this field, our law firm can successfully support you in defending your personal managing directors’ liability. Arrange a non-binding consultation!

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