Liability of a Managing Director: When Do a Company’s Debts Threaten Personal Assets?

Are you the owner and managing director of a limited liability company (s.r.o.) and do you assume that the company’s debts do not affect your personal assets? Under what circumstances can creditors seek to recover the company’s debts from the managing director, and what decisions might increase this risk?

In the 57th episode of Highgate Talks, Peter Varga speaks with Tomáš Demo. The co-founders of the Highgate Group discuss the liability of executives and shareholders, the protection of private assets, and situations in which a company’s financial problems can also affect the assets of shareholders and executives.

In the interview you will learn:

• Why it is important to distinguish between a partner’s guarantee and an executive’s liability,
• What risks are involved in mixing business and personal assets,
• Why loans to the owner, the use of a company car for personal purposes, and the payment of dividends during a financial crisis require special attention,
• When tax audits and foreclosures on company assets can extend to the managing director,
• What options and limitations exist for protecting assets through a holding company?
• Why should managing directors keep written records of decisions regarding the disposal of assets?