Executive Liability
Both executive officers and board members carry a huge responsibility. If you make a wrong decision or the company goes bankrupt, as a member of management you must be prepared for the matter to be investigated.
As a member of management, you are responsible for the company's well-being and survival. If you make a wrong decision, you must be prepared for all your actions to be carefully scrutinised.
However, you must not refrain from taking up managerial positions out of fear of subsequent liability proceedings. It is permissible for members of management to make wrong decisions, provided they are made on an informed, carefully considered and factual basis.
At TVC Law Firm, we have conducted innumerable cases concerning executive liability, and therefore we are familiar with the scenarios in which management operates. If executive liability insurance has been taken out, we work with the insurance company to decide on the right strategy, and to establish whether an amicable settlement may be reached.
When a company has gone bankrupt, most claims for damages against management are made by the estate in bankruptcy. In such situations, in addition to receiving claims for damages, members of management may also be disqualified from taking up management positions for a certain period of time. This means that a person is disqualified, typically for three years, from being part of company managements without accepting unlimited personal liability for the company's obligations.
The key question in both cases is whether management has acted negligently. With our many years of experience and expertise in this area, we ensure that both cases are handled with the necessary professionalism. In terms of both costs and time, it is also advantageous to let us handle the cases together.
