Liability of members of the supervisory board of a German GmbH
The German Federal Court of Justice (BGH) ruled that members of the supervisory board of a German GmbH (limited liability company), are, unlike the members of the supervisory board of a German AG (joint stock corporation), not liable in the event that the company effects payments while being overindebted or illiquid.
The members of the supervisory board of the GmbH are only liable in the event that the company suffers damages. If only the insolvency assets are shortened and the insolvency dividend is thus limited, the insolvency administrator may not successfully claim damages from the supervisory board members of the GmbH.
Federal Court of Justice, decision dated 20 September 2010 (II ZR 78/09))