German Court Ruling on Former Manager Liability Adds New Risk for Business Owners in Crisis
12.06.2026 - 00:12:55 | boerse-global.de
The country's highest civil court has tightened successor liability for former GmbH managing directors in a way that reaches beyond their tenure. In a judgment issued July 23, 2024 (case number II ZR 206/22), the Bundesgerichtshof ruled that ex-managing directors can still be held personally liable for damages incurred by new creditors if the company's financial distress continues after their departure and the harmful contracts were signed later. The liability does not dissolve upon death — it can pass to the heirs.
The decision sharpens the stakes for anyone who leads a limited liability company through a crisis, even after they have left. It also means estate planners and family businesses face a new layer of exposure.
Workers' Rights Strengthened in Insolvency
A separate ruling by the Mecklenburg-Western Pomerania State Labour Court (file number 2 SLa 67/25) bolsters employee protections. Compensation claims arising from acceptance of default — the situation where an employer does not assign work but still owes wages — survive insolvency proceedings and must be treated as mass liabilities. The court stressed that simply relieving an employee of duties does not free the employer from the obligation to pay unless the company has properly declared mass insufficiency.
Restructuring and Shutdowns Move Ahead
The Social Chain AG is pursuing a rescue through an insolvency plan. A filing submitted Thursday at the Berlin-Charlottenburg District Court shows that Hamburg-based MERIDIANA Capital Markets SE is to acquire all shares. Shareholders will receive nothing: available funds are insufficient to satisfy all creditor claims under insolvency law, and the plan — which still requires creditor approval — allocates no distribution to equity holders. A date for the vote has not yet been set.
In contrast, Gebelein Laser- und Biegetechnik GmbH in Naila is closing its doors. Founded in 2004, the 40-employee company will cease operations on June 30. A search for investors failed because offers came in well below liquidation value; production already ended in late May. An online auction of inventory runs until June 17. The good news: all apprentices have found new employers.
Automotive Supplier Crisis Hits 120-Year-Old Firm
The Paul Köster GmbH in Medebach, a machine builder that has operated for nearly 120 years, has filed for insolvency. The company blames a sudden drop in orders, rising cost pressure, and intensifying pricing demands — a familiar picture across the automotive supply chain. 320 jobs are at risk.
Operations continue for now, and employee wages are secured for three months through insolvency benefit payments. The Arnsberg District Court appointed attorney Marco Kuhlmann as administrator.
Football Club and Airport Feud Make Headlines
Away from the Mittelstand, the financial turmoil at TSV 1860 Munich escalated Thursday. Peter Gauweiler, the lawyer representing investor Hasan Ismaik, accused club officials of deliberately risking insolvency and the associated relegation. The club had to prove it could cover €2.7 million for its third-division licence by June 3. Gauweiler announced he would appeal the sporting relegation and said the investor side is weighing further options.
Meanwhile, the Federal Administrative Court ruled Wednesday (file number 8 C 4.25) that the state of Rhineland-Palatinate cannot claw back €10.3 million in aid granted to Frankfurt-Hahn Airport in 2017 and 2018. The court found the subsidies were lawful at the time of approval, regardless of the airport's subsequent 2021 insolvency.
