Alexander Isola and Stefan Weileder as liquidator for MC Kunststofftechnik GmbH

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Alexander Isola and Stefan Weileder were appointed liquidators for MC Kunststofftechnik GmbH, an injection molding company in Graz, whose main business is in the automotive sector. In July the company filed for insolvency at the Regional Court for Civil Matters in Graz – a restructuring procedure without self-administration has been initiated.

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Liability for payments after company has become insolvent

If a managing director of a company makes payments after a substantive insolvency, they may be liable for damages under Section 25(3)(2) of the Statute on Limited Liability Companies. This does not apply to payments that comply with the duty to exercise due care and diligence of a prudent and conscientious manager even after the occurrence of substantive insolvency. Such liability will arise if there is a reduction in the company's assets which are distributable as part of the insolvent's estate because the managing director filed for insolvency late and payments were made in the meantime. The company is the party entitled to such damages.

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Employed or self-employed? Request an advance ruling!

Determining whether an individual is an employee or self-employed can be risky for both the contractor and engager. Often, no one knows exactly how to qualify an individual until the national insurer claims arrears in social security payments in the wake of an audit. The parties involved hardly ever have legal certainty in advance. The Social Security Determination Act aims to change that.

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