Insolvency Law · European Union
Protect Yourself From Directors’ Liability When a Company Fails
When a company becomes insolvent, the spotlight turns to its directors — and in many European countries they can be held personally liable for wrongful trading, preferential payments or failure to file on time. We match you, free of charge, with a lawyer who defends and advises directors in insolvency, so you understand your exposure and act before it grows.
- Wrongful & fraudulent trading advice
- Defence against personal claims
- No fee to get matched
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Who this is for
A director’s duties do not disappear when the money does
Directors’ liability is the personal responsibility a director can face when a company is insolvent and the law decides they acted wrongly. While limited liability normally protects directors from company debts, that shield can be lifted in specific situations: continuing to trade when the company could not pay its debts, paying some creditors ahead of others, failing to file for insolvency within the time required, or taking money out of a struggling company improperly. The exact rules — and how aggressively they are enforced — vary significantly between European countries, and in some jurisdictions a breach can lead to personal repayment orders, disqualification from directing any company, or even criminal exposure. Directors often learn of their exposure only when an insolvency practitioner or a creditor sends a demand, by which point the options have narrowed considerably.
Where directors are caught out
Directors’ liability usually bites after the fact.
The damage is done before they ask for help.
By the time a demand or claim arrives, the transactions that triggered it are history — which is why early advice matters so much.
Traded on while insolvent
Directors who keep trading after the company can no longer pay its debts can be ordered to contribute personally to the shortfall. The line between a genuine rescue and wrongful trading is rarely obvious at the time.
Preferential payments
Paying a favourite creditor, a connected company or a family member ahead of others, just before insolvency, can be reversed and charged back to the director. What feels like loyalty can look like a preference to a court.
Missed filing deadline
Many countries impose a duty to file for insolvency within a set period after insolvency occurs. Missing that window is often treated as misconduct on its own, even where the director was trying to save the business.
What you get
A lawyer who protects directors before and after a claim
We only match you with lawyers who specialise in director liability and insolvency, so your advice is specific, not general.
Early exposure assessment
Your lawyer reviews the company’s trading history and the directors’ decisions, and tells you plainly where personal liability may arise and which steps reduce it now.
Defence against claims
If an insolvency practitioner or creditor has already made a claim, your lawyer builds your defence, tests the evidence and negotiates so the outcome is limited rather than left to run.
Disqualification defence
Where disqualification proceedings are threatened, you get representation to protect your right to direct companies, and advice on undertakings that can avoid a contested hearing.
Pre-insolvency strategy
Before you act — resigning, paying creditors or filing — your lawyer advises on the correct sequence so ordinary rescue steps do not accidentally create a personal liability.
Coverage
Directors’ liability lawyers across Europe
Director duties and the circumstances that trigger personal liability are set by each country’s national law, so the right lawyer is one who knows how your jurisdiction enforces them. We match cases across the following countries and beyond:
Frequently asked
Directors’ liability — common questions
Can I be held personally liable for my company’s debts?
Limited liability normally protects directors, but that protection can be lifted in specific cases — wrongful or fraudulent trading, unlawful dividends, preferential payments or failure to file for insolvency. Whether you are exposed depends on the facts and your country’s rules, which a lawyer can assess.
What is wrongful trading?
It typically means continuing to trade when a director knew, or should have known, that the company had no reasonable prospect of avoiding insolvency, leading to a larger shortfall for creditors. Where proven, a director can be ordered to contribute personally to the company’s debts.
What is a preferential payment?
It is a payment that unfairly puts one creditor, often a connected party, ahead of others shortly before insolvency. Such payments can be set aside and recovered, and a director may be personally liable if they authorised or benefited from them.
When must I file for insolvency?
Several European countries impose a duty on directors to file for insolvency within a defined period — often a few weeks — after the company becomes insolvent. The deadline and the consequences of missing it vary by country, so you should check your specific jurisdiction.
Can I resign as a director to avoid liability?
Resigning does not erase liability for decisions made while you were a director, and in some cases it can look like abandoning a struggling company. Resignation is a legitimate step but should be taken with advice so it does not create new problems.
What is director disqualification?
It is a formal ban on acting as a director of any company, usually for a set number of years, imposed for serious misconduct such as trading while insolvent or fraudulent behaviour. A lawyer can defend the proceedings or negotiate an undertaking to limit the impact.
Free case review
Know your exposure before a claim reaches you
Tell us what the company did and what stage the insolvency is at, and we’ll connect you with a directors’ liability lawyer who defends directors in your country every day — free of charge, with no obligation to hire.