How is the liability of the association regulated?
April 23, 2023 | 50,00 EUR | answered by Otto Krebs
Dear lawyer specializing in association law,
I am Sven Fuchs, the chairman of a non-profit environmental protection association. Lately, there have been increasing questions regarding the liability of the association, and I am uncertain about the legal situation.
To provide some context: Our association is involved in various environmental protection projects and regularly holds events and activities. We also collaborate with external partners and sponsors. The question arises about who would be liable in the event of damages or other legal issues involving the association.
Currently, my concern is that the board members or the association itself could potentially be personally liable in serious situations. I would like to know how the liability of the association is regulated in association law and what risks we face.
What options are available to minimize or secure the liability of the association? Are there specific insurances or measures that we, as the board, can take to reduce our liability risk?
I would greatly appreciate it if you could answer these questions and assist us in clarifying the legal situation and securing our organization.
Thank you in advance for your help.
Sincerely,
Sven Fuchs
Dear Mr. Fuchs,
Thank you for your inquiry regarding the liability of your non-profit environmental protection association. The liability of an association in association law is an important topic that is relevant for board members and association members alike. I am happy to explain the legal situation to you and provide you with some recommendations to minimize the liability risk of your association.
In general, an association, as a legal entity, is liable for its liabilities. This means that the association is liable with its assets for any damages or other liabilities. In contrast, board members are generally not personally liable for the association's liabilities, unless they act intentionally or with gross negligence.
To minimize the liability risk of the association, I recommend taking the following measures:
1. Association liability insurance: Association liability insurance can be useful to cover potential claims for damages from third parties. This insurance protects the association from claims arising from the association's activities.
2. Risk management: Conduct a risk analysis and identify potential risks in your association's work. Develop measures to minimize or avoid these risks.
3. Bylaws design: Ensure that the association's bylaws contain clear regulations regarding the liability of board members and the representation of the association. Also, consider the principles of proper association management.
4. Documentation: Document all important decisions and association activities in writing. Good documentation can help limit the association's liability in case of emergencies.
5. Legal advice: If you are unsure, seek legal advice in a timely manner. A specialized lawyer in association law can support you with legal questions and help you identify and minimize potential liability risks.
I hope that this information is helpful to you and supports you in your role as chairman of the board. If you have any further questions or need legal advice, I am at your disposal.
Sincerely,
Otto Krebs
Lawyer specializing in association law
