Mismanagement

Whether certain acts can legally constitute mismanagement is regularly estimated wrong by managers. Mismanagement is only established when no reasonably acting manager, capable of fulfilling the tasks, would have acted the way this specific manager has done. Examples of mismanagement are conduct in violation of the corporation goal or an illegitimate transfer of assets. In some case entrepreneurship can also lead to personal liability of a manager.

Read more on mismanagement at Directors liability in the case of banruptcy.