Directors’ and officers’ liability of the Chief Financial Officer is a hot topic. CFO's are frequently called to account in legal proceedings based on directors’ and officer's liability. The recent Steinhoff case and a little longer ago the Landis case are striking examples. Both cases were brought by aggrieved investors on grounds of misleading (annual) figures.
As the person with principal responsibility for the financial figures, the administrative organization and internal control/risk control, the CFO is an easy target when liability claims are brought against a board of directors. Especially if there are misleading figures. The introduction of the Dutch Class Action Financial Settlement Act on 1 January 2020, with the new option for investors or shareholders to claim damages in a class action, makes the Netherlands more interesting as a forum for claims about misleading (share price) figures. This justifies the question: is the CFO in the line of fire?
In this article Bart will discuss the crucial and complicated (double) role of the CFO within a company and the CFO's directors’ and officers’ liability. Download the full article via the button below.
If you have any questions regarding this article, please do not hesitate to contact us.
