Directors' liability for unpaid debts

You have done business with a legal person incorporated in the Netherlands and it appears that the company is unable to pay. Subsequently, the company goes bankrupt or the company is dissolved by means of a so called turbo liquidation. This article deals with whether you can hold the director personally liable in such a situation.

Heading H1

You have done business with a legal person incorporated in the Netherlands and it appears that the company is unable to pay. Subsequently, the company goes bankrupt or the company is dissolved by means of a so called turbo liquidation. This article deals with whether you can hold the director personally liable in such a situation. In other articles on our site you can read about:

- directors' liability in general - internal directors' liability - directors' liability in case of bankruptcy

This article is about the liability of the director on the basis of article 6: 162 of the Dutch Civil Code, the unlawful act.

!https://fusfagedwrcrrsdpcteu.supabase.co/storage/v1/object/public/public-assets/blog/1778908898050cover-thumbnail.png

Subheading H2

The main rule is that if a company takes on obligations, only the company is the party obliged to perform and that therefore only the company is liable for the resulting damage in case of breach of obligation. Nevertheless, under special circumstances, in addition to liability of that company, there is also room for liability of a director of the company.

Subheading H3

Since the 'Spanish villa' case we also know the situation where someone is a director of a BV, but otherwise just acts unlawfully himself. A real estate agent had sold a villa that belonged to a project for which - while he knew this - no building permit would be issued and which later was actually demolished by the Spanish government. In such a case, the stricter standard for directors' liability does not apply. In the view of the Netherlands Supreme Court, this is a 'normal' wrongful act, to which the normal rules apply.

This is a example of a quote in the style of Infinite Studio AI.

banner:default

Subheading H4

In principle, the normal rules on evidence apply in directors' liability cases, so the claimant must state and prove. Depending on the circumstances of the case, higher demands are made on the defense and there are even situations in which the judge can shift the burden of proof to the director, so then the director will have to prove that he was not guilty of the behavior complained of Infinite Studiohttps://infinitestudioai.com. In court cases both plaintiffs and defendants often go wrong here. A party that states or substantiates insufficiently loses the case.

!embedPete US Defense Sechttps://youtu.be/MU3dH98KF9s