Publication by fokus partner Philipp Wetter on the rights, duties and liability risks of supervisory board members in a financial crisis. Published in “AR aktuell” 06/2024.

A (still) high level of interest rates and inflation combined with geopolitical crises and global uncertainties have led to a recession in the Austrian economy following stagflation. While the construction and property sectors were particularly affected in the first half of 2024, with some spectacular insolvency proceedings in terms of liabilities, the recession is now increasingly reflected in the insolvencies of industrial companies. Around 6,500 corporate insolvencies are expected for 2024, the highest figure since the crisis year of 2009. Only moderate economic growth is expected for 2025, although the effects of the expiry of subsidies and bank guarantees granted as part of the COVID-19 pandemic next year remain to be seen. Recently, an increasing number of large (supervisory board) companies and entire groups of companies have been affected by insolvencies. This gives rise to an overview of the potential liability risks for supervisory board members in the event of material insolvency and any failure by the management bodies to file for insolvency in good time.

You can find the full article in the 06/2024 issue of Aufsichtsrat Aktuell.