When is a director personally liable for the BV's debts?

It may be the case that a director of a PLC is privately liable for the debts of the PLC, but the fact that the court has ruled that the PLC must pay the debt is not sufficient. There must be other reasons that make the director personally culpable. Let me explain how this works.

The basic principle is that a director is not privately liable for the debts of his or her PLC. The business owner should be allowed to do business, and that includes risks. It follows from case law that in some cases this is the case. It must then be considered whether the director, at the time he or she entered into an agreement, should have known that the PLC would not be able to pay the debt. In addition, the director must also be personally culpable because he allowed the debt to arise and exist. These are two difficult conditions, on which my colleagues and I can advise you well.

What are your chances?

There are also other circumstances under which you can sue (or have sued) a director of a defaulting bv. For example, if the director has wilfully emptied the bv to avoid paying your invoice, or has otherwise actively caused you to be unable to collect your claim against the bv. It also includes a situation where the bv pays all its creditors except you. The highest court in the Netherlands, the Supreme Court, has ruled on a number of cases that have opened up the possibility of suing the director of a defaulting bv privately. Lower courts have further fleshed out those rules of law. Did your last financial statements contain bad debts of more than €25,000? Are you uncomfortable with not receiving that money? Then come and spar with me for an hour, and I will put the case along the bar created by the Supreme Court and assess what your chances are. Perhaps the claim is less uncollectible than you think!

Malafide business owners

Finally, there is a feeling among many business owners that directors often hide behind their PLCs and sometimes even abuse them. In order to prevent this from happening again and again, the board ban was recently introduced into law. This allows rogue business owners to be banned for a certain time from doing business and from causing debts to third parties. I would also like to explain this regulation to you in more detail.

Wondering what fellow entrepreneurs would do if a PLC fails to pay even after a court order?
Watch the video at #watisuwspraak.