In 2009 in Austria the number of opened insolvency proceedings again increased by about 15%, with the result that directors’ duties surrounding insolvency are attracting more and more attention.
The discussion of directors’ duties under Austrian law focuses on the management board, since in the Austrian two-tier management system it is the managers of that body (or in case of a limited liability company the managing directors) who are responsible for managing and directing the business and affairs of the corporation. Supervisory functions, on the other hand, are performed by a separate corporate body, the supervisory board. The concept of executive and non-executive directors being members of one board is largely unknown to Austrian law.
