The entrepreneur as a debtor

Half of the entrepreneurs indicate that they are already having problems repaying their short-term debts. These are fixed costs such as loans, rent, taxes, social security contributions, energy bills and invoices. Due to the domino effect, one self-employed person may drag down another. Directors may be held personally and jointly liable for the established deficit of the debts if the following conditions are met:

  • They knew or should have known at a certain point prior to the eventual bankruptcy that there were evidently no reasonable prospects to continue the activities and that bankruptcy was inevitable;
  • They were a director or at least exercised actual directorial powers at that time;
  • They did not act as a normal and careful director would have acted in the same circumstances. 

Concerned directors of companies in effective difficulties wonder to what extent they are still allowed to try to pursue a solution for the struggling company. Are they obliged towards shareholders and staff to consolidate that one potentially very profitable deal or opportunity? Will they be liable or not?

+32 3 238 80 70