Tips to limit your liability as a director
- The basis
- Edited 30 March 2026
- 1 min
- Rules and laws
Directors of associations do not always make good decisions. How do you make sure that, as a director, you do not have to bear the consequences of a wrong decision? 5 tips to avoid being personally liable.
1. Register at the KVK
Directors are not personally liable only when a vereniging (association) is founded by a civil-law notary and registered in the Business Register. So, check whether the vereniging was founded with the help of a civil-law notary and is registered in the Business Register. Note that in case of mismanagement, you can always be personally liable.
Check straight away whether the registration with KVK is correct: are the right managing directors registered?
2. Read the articles of association
Read the articles of association of the vereniging carefully. An association established by a civil-law notary has articles of association. These state who has which authorities, how the board takes decisions, and how board members are accountable. Board resolutions that conflict with the articles of association are invalid. An invalid decision can have major consequences.
Amend the articles of association if you make an agreement that affects them. You should also check regularly that the articles of association still comply with the law.
3. Check the financial statements
Study the financial statements of the vereniging. Financial statements show how the verenigingis doing. Is there a shortage or is there enough money to absorb setbacks? Look at the financial statements from several years to see how that financial situation came about.
4. Liability insurance
Ask whether the association has liability insurance for directors. If the association does, check what coverage the insurance offers. It is never possible to assess and cover all risks in advance.
Also ask how long the insurance has been in place and whether the premium has been paid all those years. Insurers can issue a statement on this. Decisions made by a previous board may negatively affect the current board.
5. Deregistration at the KVK
Are you quitting as a director? Then make sure you are deregistered. Or arrange this yourself in the Business Register. As long as you are registered as a director, you remain liable for decisions. Report changes in the board to the Business Register as soon as possible.
Is your vereniging required to register Ultimate Beneficial Owners (UBOs)? If so, make sure your vereniging also deregisters you as a UBO in the UBO register.
