Abstract

It is unacceptable that insolvent companies continue trading whilst their management board members are not personally liable for the company’s debts under Art. 299 of the Commercial Companies Code solely because they assumed the position of a board member at the time when the company was already insolvent. Board members in limited liability companies are personally liable for debts arising after they have joined the management board, unless they filed a petition in bankruptcy on the grounds that the company’s assets are not sufficient to cover the costs of the insolvency proceedings and the company was already insolvent when they entered the board.