Director's liability

Director’s liability pertains to the legal responsibilities that company directors have for decision-making and corporate governance.

In Luxembourg, this liability is clearly defined by local corporate law and the Articles of Association, ensuring that directors are accountable for their actions. Proper risk management, ethical governance, and adherence to regulatory standards are critical. Directors must ensure that decisions align with shareholder interests, and failure to do so may result in personal liability for misconduct or financial mismanagement, making informed leadership essential in Luxembourg’s strict legal environment.