What liability risks do members of associations have?
March 20, 2023 | 50,00 EUR | answered by Thomas Tressel
Dear lawyer specializing in association law,
I am a member of a non-profit organization and I am concerned about my personal liability in case of legal problems or financial difficulties of the organization. The current situation is that I have been actively involved in the organization for several years, but have not previously considered potential liability risks.
I now want to focus more on this issue in order to minimize any risks and protect myself accordingly. My concerns are related to not knowing exactly what duties and responsibilities I have as a member of the organization and how far my personal liability can extend. I am particularly interested in whether I, as a simple member, could be held liable for the financial obligations of the organization and how I can protect myself from that.
I wonder what specific liability risks members of organizations face and if there are ways to protect or at least limit them. Are there specific measures that I, as a member of the organization, can take to minimize my personal liability?
Thank you in advance for your help and support.
Sincerely,
Greta Zellerbach
Dear Mrs. Zellerbach,
Thank you for your inquiry regarding your personal liability as a member of a nonprofit organization. It is understandable that you are concerned about the extent of your liability in case of legal problems or financial difficulties of the organization and how you can protect yourself accordingly.
First and foremost, it is important to know that members of an organization are generally not personally liable for the financial obligations of the organization. According to § 31 of the Civil Code, members of an organization are only liable with their agreed contributions or assessments and not with their personal assets. This means that your personal liability is limited to the amount of your membership fee, unless different regulations have been made in the organization's law or statutes.
However, there are certain exceptions where members of an organization may be held liable for the organization's obligations. These are usually cases of gross negligence or intentional breach of duty. If you, as a member of the organization, act grossly negligently or intentionally violate legal regulations or the organization's statutes, you could potentially be held personally liable.
To minimize your personal liability, it is advisable to comply with legal regulations and the organization's statutes, know your duties and responsibilities as a member, and fulfill them diligently. Additionally, make sure that the organization is properly managed and no legal problems arise.
For further protection, you can take out an organization legal protection insurance that financially supports you in case of legal disputes. It would also be prudent to regularly review the organization's financial situation and take early measures in case of irregularities to avoid financial difficulties.
Overall, it is important to be aware that personal liability as a member of an organization is generally limited as long as you act in accordance with the law and the statutes. By prudent organization management and fulfilling your duties, you can minimize your liability risk.
I hope that this information has been helpful to you. If you have any further questions, please feel free to contact me.
Yours sincerely,
Thomas Tressel
Attorney specializing in organization law
