Director Liability

Director Liability

Facing personal liability as a director or looking to hold a director liable?

Director Liability

A director of a company is in principle protected by the legal entity: the debts of the BV are not automatically his personal debts. But there are situations in which a director can be held personally liable both towards the company itself and towards third parties.

As a corporate law lawyer, we advise and assist both directors who are being held liable and parties who wish to hold a director liable.

Internal liability

Liability of the director towards the company itself. Applies in cases of mismanagement where the director can be seriously blamed.

Taking irresponsible risks
Favouring oneself at the expense of the BV
Failing to act in the interests of the company

External liability

Liability towards third parties (creditors, counterparties). Particularly relevant in insolvency or failure to meet obligations to third parties.

Selective payments in anticipation of insolvency
Entering into obligations on behalf of the BV that cannot be met
Manifestly improper management in insolvency

When do you need legal assistance?

You are being personally held liable by the trustee in bankruptcy
Shareholders are holding you liable for damages suffered
Creditors are holding you personally responsible
You want to hold a director liable
You want to know how to limit your liability risk
You are being sued as a (former) director

Serious reproach as the standard

The threshold for director liability is deliberately set high. A director is only liable if a serious reproach can be made against them. This is a strict standard but once that threshold has been crossed, the director can be held personally liable for the full damages. Early legal advice is essential.

Mr. Vincent Besters
Our Approach

Mr. Vincent Besters

Lawyer for Entrepreneurs · Amsterdam

"In director liability cases, we assist both directors facing claims and parties seeking to hold a director liable. Our focus: strong legal defence or substantiated claims."

Liability assessment

Evaluation of whether a serious reproach can be made.

Director defence

Forceful defence against liability claims.

Liability claims

Strong formulation and substantiation of claims.

Insolvency law

Advice and guidance in trustee proceedings.

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Frequently asked questions about director liability

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