Vol 15 (2018) - Issue 6

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Personal Liability of Managing Directors in Self-Administration Proceedings under German Insolvency Law

Abstract
German insolvency law allows for so-called 'self-administration' proceedings, wherein an insolvent company retains possession and control of its assets while undergoing a restructuring process. Up to now, it was heavily disputed whether managing directors of a company in self-administration are personally liable to other parties for any breach of insolvency-related duties. The Federal Court of Justice has now given an answer to this question in a recent decision which brings legal clarity and certainty to the German restructuring and insolvency practice.