Time out? Implications of directors’ liability for breach of German company law

In this article, Philip Hertz and David Towers from Clifford Chance look at the case of Kornhaas v Dithmar C-594/14.  The key points arising from the article are as follows:

  • In Kornhaas v Dithmar C-594/14, the managing director of an English company was held liable to reimburse the company’s liquidator for failing to file for German insolvency proceedings within a 21-day time limit imposed by German company law
  • Because the English company was subject to German insolvency proceedings, certain aspects of German corporate law which were closely linked to the insolvency law also applied
  • Directors of companies registered in one member state but with their centre of main interests in another member state need to be aware of the fact that they may be subject to the obligations of legal regimes other than that belonging to the country of incorporation
  • Different time limits, and the types of liability they may attract in an insolvency context, apply in some of the key European jurisdictions and directors should seek advice from all relevant jurisdictions

Click here to read the full article.

Filed Under: CRI

Relevant Articles
Area of Interest