When Delay Comes At A Cost

Five sources of liability for company directors during a crisis—and when delaying restructuring measures can put their personal assets and freedom at risk.

Few people can understand the anxiety experienced by the director of a company in financial distress. This is because the director must contend not only with the potential collapse of the business but also with possible criminal liability for failure to pay debts to the State and e-EFKA (the Greek social security agency), employees’ reactions, and the potential loss of personal assets for debts for which the director is jointly and severally liable (such as VAT and social security contributions) or has provided a personal guarantee (usually bank loans).