Information on the subject of directors' and officers' liability - What is the liability of the managing director of a GmbH?
The position of managing director not only entails a high level of responsibility towards employees and customers. A managing director also accepts the risk of having to accept personal liability.
According to the law, GmbH managing directors have to follow the duties of care of a prudent businessman. In corporate law, the legal term "corporate liability" usually refers to members of the board of directors of AGs and managing directors of a GmbH (Section 43 (1) of the GmbH Act). The legal regulation of the liability of managing directors of GmbHs and AG board members is very strict in Germany. If a managing director breaches his duty of care, he must be liable to the GmbH for any damage incurred (Section 43 (2) GmbH Act).
In this respect, the law differs drastically from the way it deals with employees, as board members and managing directors are also held liable for damage caused by very minor negligence in their area of responsibility. The principle of reversal of the burden of proof applies here.
Under the Wefly concept, accidental damage to the aircraft can be classified as negligent by the aircraft insurance company. In this case, the managing director of the GmbH is fully liable with his private assets if he was the pilot who caused the damage himself.
