Managing Director Liability – Business Judgment Rule
Managing directors constantly face critical business decisions that shape the success of their companies. The economic outcome of these decisions is often uncertain by nature. Investments, strategic realignments, and everyday business operations all involve both opportunities and risks. Effective risk management and well-informed decision-making are therefore essential for sustainable business growth and long-term corporate success.
Austrian corporate law recognizes this business reality and does not hold managing directors liable for every incorrect decision. Instead, it provides an important legal safeguard: the Business Judgment Rule.
This principle clarifies that liability does not depend on whether a business decision ultimately leads to economic success or failure. Rather, the decisive factor is how the decision was made.
Corporate Criminal Liability: Preconditions to hold companies liable – and how to minimize risks
Companies are increasingly exposed to criminal investigations. Under Austria’s Corporate Criminal Liability Act (Verbandsverantwortlichkeitsgesetz – VbVG), criminal responsibility is no longer limited to individuals. Companies themselves may be held liable for criminal offences committed within their organization.
For managing directors, shareholders and compliance officers, understanding the scope of corporate criminal liability is essential in order to manage legal, financial and reputational risks effectively.
Cybercrime and Jurisdiction: When are Austrian authorities competent?
Cybercrime offences are among the most dynamic and fast-developing areas of criminal law. Attacks are typically cross-border in nature: perpetrators and victims are often located in different jurisdictions, and the underlying technical processes are complex. As a result, affected individuals and businesses frequently ask: