Liability of directors who ‘hide’ behind companies

Legal news

Often, the board of a company is formed by one or more other companies. Those direct directors in turn are managed as well of course. The ‘directors of the directors’ are also referred to as the indirect directors. The law provides that if a direct director is found to be liable, the indirect directors are liable as well. But is this always the case, or are there exceptions? In this contribution, I am dealing with this issue and discussing a few bases for directors’ and officers’ liability. I will limit myself to the liability of directors of private companies with limited liability and public limited companies.