Director's liability: when are you at risk?

Director's liability is an important topic for every entrepreneur with a BV. Although the BV structure provides protection in principle, there are situations in which you as a director can still be held personally liable.

Internal liability

The company itself can hold a director liable for damage resulting from improper management. Examples include entering into irresponsible financial obligations or neglecting the administration.

External liability

Third parties, such as creditors, can also directly hold the director accountable under certain circumstances. This is particularly the case with:

• Unwillingness to pay
• Selective payment
• Entering into obligations while you knew the company could not fulfill them

Protection

To limit risks, it is important to maintain good administration, seek professional advice in time, and act adequately in case of financial problems.