Director Liability

Director liability is arguably the most unpleasant issue that managing directors and board members have to deal with.

In business, you make decisions every day. You don’t always have all the necessary information at your disposal, which is why the occasional decision may not be the right one. However, as long as executives have made these decisions with the due care of a prudent businessperson, they do not entail liability risks (Business Judgment Rule).

If, on the other hand, managing directors, board members, or supervisory board members commit culpable breaches of duty, they are personally liable and must compensate for the resulting damages. Business leaders, as well as other corporate bodies, are thus exposed to risks against which they should protect themselves. With sound legal advice, risks can be minimized and the financial outcome for the company maximized even before important decisions are made.

VOELKER’s corporate law team is well-versed in potential liability risks based on years of litigation experience.

For corporate officers, VOELKER develops strategies to avoid liability and advises them on fulfilling their legal and other fiduciary duties, both in day-to-day business and, in particular, regarding operationally sensitive issues, in situations related to insolvency, as well as in (shareholder) conflict situations that threaten to spill over to uninvolved board members.

VOELKER assists companies in establishing compliance management systems and regularly trains companies and board members on compliance obligations. We also advise you on whether taking out D&O insurance makes sense for you as a managing director or for your company.

For companies, VOELKER enforces claims for compensation against board members or represents (former) board members in defending against liability lawsuits. In doing so, we provide support in reviewing and investigating the facts of the case and in internal and external communications.