Damage caused by CEO fraud or concealed profit distribution
While financial losses due to CEO fraud have increased significantly in Germany as a result of the coronavirus, back tax payments due to concealed profit distributions, among other things, have always been an ongoing issue for shareholder managing directors. What both losses have in common is that they can be covered by D&O insurance, for example.
D&O is a special professional liability insurance for managing directors to protect them from personal insolvency. This is because managing directors are liable to their GmbH with their private assets to an unlimited extent, even in the event of slight negligence. In the case of CEO fraud, the managing director is generally liable due to organizational fault. It is necessary for the managing director to be held liable for damages by the GmbH.
omegaconsulting partner and lawyer Karin Baumeier advises company managers on the subject of D&O insurance. Take advantage of her extensive expertise to protect yourself against potential risks or to receive competent support in the event of a claim.
