2026 in particular shows that personal liability does not only arise in times of crisis, but also when risks are not properly identified, assessed and documented at the start of the year.
Liability does not begin with a crisis
A common misconception is the assumption that directors’ and officers’ liability only becomes relevant in the event of economic failure. In fact, liability begins much earlier – namely, when decisions are made in breach of duty on the basis of insufficient information.
At the beginning of the year in particular, managers regularly make decisions with far-reaching consequences:
- investments,
- personnel measures,
- strategic realignments.
Without up-to-date figures, reliable scenarios and documented risk assessments, entrepreneurial freedom can quickly turn into a liability risk.
Why courts view the beginning of the year with particular scepticism
In detention proceedings, the following questions are regularly asked:
What did the management know – and what should they have known?
The beginning of the year is a particularly relevant time for this because:
- current figures are available,
- risks can be reassessed,
- plans are consciously updated.
Anyone who makes unprepared decisions at this point will find it difficult to exonerate themselves later on.
Typical liability errors in Q1
- Continuing with old plans without updating them,
- No structured risk analysis,
- Unclear distribution of responsibilities and areas of competence
- Lack of documentation of decision-making processes.
Particularly critical: anything that is not documented is often considered legally invalid.
Conslusion
The beginning of the year is not a routine organisational period, but a test of liability law.
Recommended action:
- Identify and document risks,
- Prepare clear bases for decision-making,
- Clearly define responsibilities,
- Involve shareholders and committees in a structured manner.
