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

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.

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About the author:

Neeta started her legal career at Allen & Overy in 2008 in the midst of the global financial crisis and the collapse of Lehmans where she gained most of her paralegal experience.

Neeta also did a short stint in litigation at the Revenue and Customs Prosecutions Office in 2006. Neeta graduated with a 2:1 honours degree from University of London, Queen Mary College and went on to obtain a distinction from the College of Law in the Legal Practice. She has been working at Lexis Nexis since April 2013.