Liability of board members – key aspects and legal risks
Members of the board of directors of limited liability companies have broad responsibility for the company’s actions and liabilities. Every decision of the board of directors may entail significant property consequences, and failure to comply with their duties may lead to:
- civil liability – compensation claims by creditors, partners or contractors,
- criminal liability – arising from actions to the detriment of the company or unlawful decisions,
- financial liability – in the event of ineffective enforcement against the company, members of the board of directors may be liable for its obligations with their own assets.
Failure to take timely action, such as filing for bankruptcy of the company, can result in imprisonment of up to one year. Therefore, professional support in managing legal risks is crucial.
Comprehensive legal support for boards of directors
Dowlegal Law Firm offers comprehensive legal support, helping board members effectively minimize legal and financial risks. Our activities include:
- Protection of the interests of board members – in cases of civil claims, financial claims and criminal proceedings,
- Recovery of debts – under subsidiary liability for the company’s obligations,
- Representation in tax disputes and before the Social Security – to prevent negative consequences resulting from arrears of contributions or taxes,
- Support in restructuring and bankruptcy processes – comprehensive assistance in crisis situations, protecting against subsidiary liability.
What are the responsibilities of board members?
Board members are responsible for:
- Management of the company and its liabilities – compliance with commercial law, tax law and corporate governance regulations.
- Tax and contribution liabilities – including contributions to the Labor Fund, health insurance and social security to the Social Security Administration and the Internal Revenue Service.
- Represent the company externally – in dealing with contractors, financial institutions and administrative bodies.
- Avoiding actions to the detriment of the company – management errors, illegal decisions or failure to act can lead to civil or criminal liability.
Why use Dowlegal’s services?
The function of a member of a board of directors involves numerous responsibilities that carry significant legal risks. Our law firm supports boards of directors by offering:
- Legal advice and risk analysis – we help you make decisions in accordance with applicable regulations,
- Representation in the most difficult cases – both civil, financial and criminal,
- Professional support at every stage of the business – from the day-to-day operations of the board of directors to crisis situations such as company bankruptcy.
Our experience allows board members to minimize the risk of personal liability and effectively protect their interests.
If you serve on a company’s board of directors and need legal support, Dowlegal will help you act in accordance with the law, safely manage the company and avoid potential problems.
Frequently asked questions
What services does Dowlegal Law Firm offer in terms of legal support for board members?
Dowlegal Law Firm offers comprehensive legal support for board members and owners of limited companies, helping to minimize legal and financial risks. We specialize in the protection of the interests of board members, recovery of debts under subsidiary liability, representation in tax disputes and Social Security issues.
What is subsidiary liability of board members?
Subsidiary liability of members of the board of directors refers to the situation in which a member of the board of directors can be held liable for the company’s debts if the company has not filed for bankruptcy on time. We assist in the recovery of debts in such cases, protecting the interests of the board of directors.
What are the responsibilities of board members in terms of civil liability?
Members of the board of directors are responsible for the proper functioning of the company, its obligations, as well as for the timely payment of tax liabilities to the Social Security and Tax Administration, including insurance, health and Labor Fund contributions. Our legal support includes both advice and representation in such matters.
Does the Dowlegal law firm help with disputes related to Social Security and the Internal Revenue Service?
Yes, we offer comprehensive assistance in tax disputes and Social Security issues, helping you avoid negative consequences resulting from contribution or tax arrears.
Why use Dowlegal Law Firm as a board member?
The function of a board member involves a lot of legal responsibility, but with the help of an experienced law firm like Dowlegal, you can effectively ensure that your interests are protected. We offer legal advice and representation in the most difficult cases, related to the management of companies.
What are the responsibilities of board members?
Members of the board of directors are responsible for the proper functioning of the company, its liabilities, as well as relations between co-owners that may lead to conflicts or disputes. In addition, they are responsible for tax obligations to Social Security and the Internal Revenue Service.
What are the benefits of working with Dowlegal Law Firm?
With its experience in the field of directors’ liability, Dowlegal Law Firm ensures effective protection of the interests of management and shareholders of companies. Our services include comprehensive legal advice, representation in litigation and mediation, which facilitates the operation of the company and minimizes legal and financial risks.
What if I am a board member and need legal assistance?
If you are a member of the board of directors and need support in the area of legal liability, we invite you to contact our law firm. We will help you find the optimal solution and provide comprehensive protection of your interests.
How can a board member protect himself from personal liability?
A board member’s liability can extend to their private assets, so prevention is key. We help assess legal risks, implement safeguards procedures (compliance), and recommend and assist with D&O coverage. We act before a problem arises – not just when it’s already too late.
What does a board member face for failing to file for bankruptcy on time?
Filing for bankruptcy too late can result in property liability, prohibition from holding corporate positions and even criminal liability. Our law firm supports boards of directors in the ongoing monitoring of the company’s financial situation and helps to safely carry out the bankruptcy or restructuring process, if necessary.
Do you help with risk assessments prior to becoming a board member?
Yes. Before becoming a board member, we offer an analysis of the company’s legal and financial situation, so that the client knows what liabilities he or she may face. We also advise on how to prepare resolutions, management contract or employment contract in a way that protects the interests of the board member.
