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Can you provide some references for your claims? Don't know much about Germany but that sounds totally made up as limitation of liability is the key concept beh
by pingec 6y ago
Can you provide some references for your claims? Don't know much about Germany but that sounds totally made up as limitation of liability is the key concept behind the invention of companies.
https://en.wikipedia.org/wiki/Gesellschaft_mit_beschr%C3%A4nkter_Haftung https://en.wikipedia.org/wiki/Gesellschaft_mit_beschr%C3%A4n...
I would imagine if a director breaks the law, only then he could be personally liable. And in that case I would imagine Germany does have higher standards than US.
- 11thEarlOfMar 6y agohttps://www.mondaq.com/germany/CorporateCommercial-Law/645292/Obligations-And-Potential-Liability-Of-Managing-Directors-Of-A-German-GmbH https://www.mondaq.com/germany/CorporateCommercial-Law/64529... "If the company is in crisis special obligations arise for a managing director the breach of which may lead to a personal liability of the managing director."
- Red_Leaves_Flyy 6y agoIn theory I like this system. What are some of the downsides?
- RhodesianHunter 6y agoSignificantly less risk taking and thus fewer globally competitive companies.
- disgruntledphd2 6y agoI think that if you want to make that argument, you probably shouldn't use Germany, manufacturing powerhouse of the West, as your example. I'm not saying you are wrong, just that Germany doesn't really support your point.
- bryanrasmussen 6y agoSo this is quite a bit different and more limited than "If the company goes bankrupt, so does he." and closer to "I would imagine if a director breaks the law, only then he could be personally liable.", for example Adam Neumann might have had problems if WeWork was a German GmbH.
- bildung 6y agoFor breaking the veil of limited liability in German law, the managing director has to act in negligence/ gross negligence.