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Kanzlei Verbracken & Partner
Piercing the corporate veil: when does liability become personal?
Managing director, shareholder and guarantor are different roles. If you hold several, each basis of liability needs separate assessment.
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Company assets and personal assets
For a GmbH, company assets generally answer for company debts. Personal claims require an additional legal basis. A contractual guarantee, tort damages or breach of directors’ duties are therefore not simply the same as piercing the corporate veil.
Destructive interference with company assets
The Federal Court of Justice treats liability for destructive interference as intentional damage contrary to public policy under section 826 BGB. It particularly concerns abusive shareholder interference with company assets and operates as liability to the company. Not every poor decision or instance of undercapitalisation satisfies the conditions.
Reading a demand letter
Assessment requires the precise allegation, payments involved, your role and the amount demanded. It also matters whether the claimant is the company, administrator or an individual creditor. This helps identify the legal support and personal debt strategy required.
Sources and legal foundations
Sources checked: 14 September 2026
Your situation deserves a clear next step.
We assess your circumstances personally and involve the appropriate professionals for legal and tax questions.
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