Table comparing European directors' duties

Copyright © 2025 LexisNexis
Published by a LexisNexis Restructuring & Insolvency expert
Practice notes
COVID-19

Table comparing European directors' duties

Copyright © 2025 LexisNexis

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes
COVID-19
imgtext

Introduction

Some European countries only have a cashflow test for insolvency, others have a balance sheet test and some have both. Some countries also have a share capital test in addition (see Practice Note: European directors' duties) requiring the directors to take certain action if share capital falls below a certain threshold. Additionally, certain countries impose onerous liabilities on directors of companies entering the zone of insolvency.

CountryCashflow or balance sheet test Share capital testDuty to file for insolvencyDirectors' liabilities
AustriaCashflow (ie illiquid) or balance sheet (over-indebtedness)Without undue delay and at the latest, within 60 days of the company becoming illiquid/over-indebted.Legal representatives are liable if they (wilfully or negligently) breach their duties (ie the duty to file for insolvency), and liable to the company’s creditors if they (wilfully or negligently) breach statutory provisions that protect the company’s creditors.Office holders may further be personally liable for the company’s debt up to €100,000 per individual, if they fail to open reorganisation proceedings after receiving an auditor's report stating that the company
Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Director definition
What does Director mean?

An officer of the company, usually registered as such at companies house, but may be also be a shadow or de facto director.

Read more readmore

Popular documents

Scotland—the process for applying for sequestration

Scotland—the process for applying for sequestrationSequestration in Scotland is the legal process by which an insolvent debtor’s estate is gathered in, realised and then distributed among their creditors by a trustee appointed for that purpose. The process requires that a formal award of

If planning permission imposes restrictions on a licensed premises opening hours, once operational can

If planning permission imposes restrictions on a licensed premises opening hours, once operational can the personal licence holder apply for a Temporary Events Notice (TEN) to open for longer hours than those permitted in the planning permission?To use any property for a licensable activity both

Brussels I (recast)—domicile (Arts 4 and 63) [Archived]

Brussels I (recast)—domicile (Arts 4 and 63) [Archived]ARCHIVED: This Practice Note has been archived and is not maintained.This Practice Note considers the general rule set out in Article 4 of Regulation (EU) 1215/2012, Brussels I (recast) when determining the relevance of a defendant’s domicile to

Contributory negligence in personal injury claims

Contributory negligence in personal injury claimsContributory negligence is a partial defence which can lead to a discount in damages.Other defences may also be relevant. See Practice Notes: Did the claimant consent to the risk of injury? and Was the claimant involved in an illegal activity?If a