Types of liability

Types of liability

Businesses and their directors and supervisory directors are confronted with various types of liability.

So called internal liability is directors’ liability vis-à-vis the companies they manage. Directors and supervisory directors are under an obligation to perform their duties properly. If they fail to do so, they risk being held liable by the company itself for the damage they have caused by their improper conduct. Please click on the link above for a brief overview of all the cases in which directors may be liable towards the company itself.

The second type of liability is known as external liability. External liability means directors’ liability towards a number of parties outside the company. These include creditors such as suppliers, as well as the tax authorities or the company’s employees. Please click on this link for a brief overview of all the cases in which directors may be liable vis-à-vis third parties involved in the company.


We will be looking at a number of selected aspects of directors’ and officers’ liability law on the following pages. The information on these pages is by no means complete; it merely gives you an idea of the various types of liability that may involve directors, supervisory directors and other corporate officers.

Besides personal liability, which we will be dealing with below, there are all kinds of other procedures pertaining to corporate law which entrepreneurs may encounter, such as removing an officer from a foundation, buying out a minority shareholder, a dispute concerning a shareholders’ agreement, or a claim for compensation resulting from a corporate takeover. And of course, you can always contact Borsboom & Hamm N.V. on matters relating to partnership law, such as disputes between members of general partnerships, limited partnerships and other partnerships.