Clifford Chance

Directors' duties and liabilities under Belgian Law in times of crisis – Principles to keep in mind when trying to cope with the impact of the coronavirus

14 April 2020

Many companies have been or will soon be financially and socially impacted by the outbreak of Coronavirus. While companies are struggling with the uncertainty of what is still to come and how it will impact them, directors may find themselves in the unenviable position where they need to take crucial business decisions at short notice. It is hence important to understand how the directors must act in times of crisis and how they can mitigate the risk of personal liability where steps need to be taken to address the financial distress.

This note assesses directors' liabilities and duties under Belgian law against the backdrop of the outbreak of the Coronavirus. The principles remain, however, subject to any specific government measures taken to relax legal obligations and alleviate some of the financial consequences of the outbreak of Coronavirus (such as notably the adoption of contemplated measures to suspend the obligation to file for bankruptcy).

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