Published on LinkedIn, February 2021<\/p>\n\n\n\n
Managers are often convinced that not receiving remuneration (by not paying themselves a salary or working on a voluntary basis) means that they are not personally liable, particularly in terms of financial liability for their duties, on the grounds that they have not received any personal benefit.<\/p>\n\n\n\n
However, this mistaken belief is regularly refuted by the Court of Cassation. In fact, according to the judges, unpaid de jure directors have the same obligations, and therefore the same responsibilities, as paid directors.<\/p>\n\n\n\n
This refusal by the judges to absolve of any liability or, at the very least, to consider a \u2018reduced\u2019 liability exposes the unpaid director to financial liability for breach of duties without compensation in the event of an action for liability for insufficient assets against them in the context of judicial liquidation.<\/p>\n\n\n\n
Directors must therefore be aware of this risk before accepting an unpaid position.<\/p>\n\n\n\n