Company Representatives And Liabilities To E-EFKA And AADE

It is well known to anyone engaged in business that the position of a Chief Executive Officer entails responsibility not only towards the company's shareholders, but also towards the State and the e-EFKA. With regard to a wide range of taxes as well as social security contributions, the legal representative of a company (e.g. a Société Anonyme – S.A.) is considered liable and may be held personally accountable with their own assets.

For this reason, the Greek legislator introduced the institution of the "second chance" for representatives of legal entities as well (Article 195 of Law 4738/2020).

It was stipulated therein that the "honest" representative is discharged—after the lapse of 36 months from the submission of the company's bankruptcy application or 24 months from the declaration of bankruptcy—from any joint and several liability for debts owed to the State and e-EFKA that arose 3 to 5 years prior to the bankruptcy (the duration depends on when the