What liability risks exist for board members and how can they protect themselves from them?
April 27, 2022 | 40,00 EUR | answered by Emilia Vöss
Dear Attorney specializing in association law,
I am Quentin Meyer and currently a board member in a sports club. Lately, I have had increasing concerns regarding my personal liability in case of wrong decisions or violations of the association law.
The current situation is as follows: Our club has expanded significantly in recent years, gaining many new members and projects. This has led to a multitude of decisions that require my shared responsibility as a board member. I want to fulfill my duties conscientiously, but at the same time, I also want to protect myself from potential liability risks.
My concerns mainly revolve around the fact that as a board member, I could be personally liable for damages caused by my decisions or actions in the course of my board duties. I wonder how high the actual risk is and what specific measures I can take to protect myself from it.
Therefore, my question is: What specific liability risks exist for board members in an association and what steps can I take to protect myself from these risks? Are there, for example, insurance options or specific codes of conduct that I should follow to minimize my personal liability?
Thank you in advance for your support and I look forward to your response.
Sincerely,
Quentin Meyer
Dear Mr. Meyer,
Thank you for your inquiry regarding your personal liability as a board member in a sports club. It is understandable that you are concerned and want to ensure that you fulfill your duties on the board diligently and legally. I would be happy to explain the liability risks that board members in a club face, as well as possible steps you can take to protect yourself from these risks.
First and foremost, it is important to know that board members can be personally liable if they grossly negligently or intentionally violate their duties. This means that as a board member, you can be held liable for damages resulting from incorrect decisions or actions taken in the course of your board activities. Therefore, it is advisable to familiarize yourself with the legal regulations and the club's statutes in order to know your rights and duties as a board member.
To minimize your personal liability, I recommend the following measures:
1. Familiarize yourself with the legal framework: Read the club's statutes and familiarize yourself with the legal regulations that apply to club boards. This way, you can ensure that you carry out your duties in accordance with club law and applicable laws.
2. Document your decisions: Record all important decisions and resolutions of the board in writing. This can help you prove that you have carried out your duties diligently in case of disagreements or disputes.
3. Check insurance options: Check if the club has taken out liability insurance for board members. Such insurance can protect you in case of claims for damages and limit your personal liability.
4. Follow behavioral rules: Always make decisions in the interest of the club on the board and act conscientiously and responsibly. Avoid conflicts of interest and transparently inform the other board members about your actions.
5. Seek legal advice in case of uncertainties: If you are unsure how to act in a specific situation, do not hesitate to seek legal advice. A lawyer specializing in club law can support you with questions regarding liability and the legal exercise of your board activities.
Overall, it is important for you to be aware that there is a certain level of liability as a board member, but through careful and responsible execution of your duties and adherence to the mentioned measures, you can minimize your personal liability risk.
I hope that my explanations are helpful to you and I am available for further questions. Thank you for your trust and commitment to the club.
Best regards,
Emilia Vöss
Lawyer specializing in club law
