For What Can You Be Held Liable as a Director?

As a director or supervisor of a legal entity (such as a B.V. or N.V.), you can be held personally liable for the debts of the organization. Usually, the legal entity itself is responsible, but in some situations, liability may also fall on you as a director.

There are two types of liability:

External Liability:
This occurs when third parties, such as creditors, employees, the Tax Authorities, or a bankruptcy trustee, hold you personally liable.

Internal Liability:
This comes into play when the legal entity itself, for example after a change of management, believes that you have not acted properly. In such cases, you can also be held personally liable.

Additionally, there is increased liability in the event of bankruptcy, especially if you fail to meet your bookkeeping obligations. Mergers and demergers can also pose risks due to complex and rapid decision-making, which may have significant consequences.

Important to know:
It does not matter whether you hold a paid position, act as an interim director or perform director duties as a volunteer – the risks remain the same.