Court reverses case law on directors´ liability in M&A deals involving property

Real Estate & Construction

Dr. Martin Foerster, ILO Newsletter vom 10. April 2015

Under the Tenancy Act, if the shares in a company that rents property are sold, the landlord has the right to increase the rent to market level. Under previous case law, directors were liable only for rent payments that could not be recovered from the renting company directly. However, the Supreme Court recently ruled that a director was liable irrespective of the lessee´s ability to pay the outstanding debts.


Dr. Martin Foerster

LL.M. (LONDON) Partner