When can a director be held liable?

A legal entity, such as a BV, NV, association or foundation, can take part in economic transactions only if it is represented by natural persons. These are generally the directors.

The directors conclude contracts on behalf of the legal entity. If the company does not fulfill the agreements made in these contracts or causes damage, the company can be held responsible.  Not the directors. However, in certain cases directors can be held personally liable. Externally by third parties, or internally by the company itself.

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Related questions

  • When do I have to consult the works council?

    If a company has more than 50 employees, the management must ask for the advice or consent of the works council when taking a number of decisions. These include, for example, decisions on the transfer of the company or changes to a pension scheme. If the management does not ask the advice of the works council or does not (entirely) follow the advice of the works council, the works council can lodge an appeal against the decision.

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