Responsibilities and liabilities for managers: What's new?

A lot has changed in the past six months with the modernisation of the companies’ law (the “New Law”) which has impacted on management’s responsibilities and liabilities.

As you may be aware, managers/directors are liable to: (i) the company for the due execution of their mandates and for any misconduct in the management of the company’s affairs; and (ii) vis-à-vis third parties (and/or the company), where third parties (and/or the company) have suffered damage or loss as a result of a manager/director breaching Luxembourg’s laws or the company's articles. They can also be held criminally liable for any contraventions of the Law.

The New Law has not substantially amended this liability regime, however, it has: (i) confirmed certain commonly recognised legal practices; (ii) provided new “tools” for managers/directors to exercise their tasks; and (iii) introduced new duties and obligations.

We are going to explore these three topics in our blog over the next few weeks.

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