Germany: Directors and Officers

Managing directors of German companies face strict personal liability if they fail to recognize and act upon insolvency warning signs. This analysis examines the legal framework under German insolvency law, identifies critical operational and financial indicators that signal impending illiquidity or over-indebtedness, and provides actionable recommendations for compliance with mandatory filing obligations.

Begeht der GmbH-Geschäftsführer schuldhaft eine Pflichtwidrigkeit, haftet er der Gesellschaft für den daraus entstandenen Schaden gemäß § 43 Abs. 2 GmbHG.

Claims brought by insolvency administrators under Section 64 of the German Limited Liability Companies Act are not only among the most common...