Kornhaas (Judgment) [2015] EUECJ C-594/14 (10 December 2015)

Kornhaas (Judgment) [2015] EUECJ C-594/14 (10 December 2015)

An action against a managing director for reimbursement of payments made after the company became insolvent, based on Paragraph 64(2) of the GmbHG, falls within the scope of Article 4 of Regulation No 1346/2000 as it is directly derived from and closely connected to insolvency proceedings. The application of such a provision to a managing director of a company established under the law of another Member State does not infringe Articles 49 and 54 TFEU, as it does not concern the formation or recognition of the company, but only the consequences of insolvency and director conduct after insolvency.

Citation
[2015] EUECJ C-594/14
Parties
Liquidator/applicant: Mr Dithmar; Debtor Company: Kornhaas Montage und Dienstleistung Ltd; Respondent/managing Director: Ms Kornhaas
Jurisdiction
European Union
Judgment Date
10 December 2015
Procedural Posture
Preliminary Ruling (reference for a Preliminary Ruling) / Judgment of the Court of Justice of the European Union
Outcome
Reference answered; national law provision applicable; no infringement of EU freedom of establishment.
Legal Topics
Insolvency Proceedings, Applicable Law, Freedom of Establishment, Director Liability
EU Law Insolvency Law Company Law Insolvency Proceedings Applicable Law Freedom of Establishment Director Liability

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Parties

Mr Dithmar

Liquidator/applicant

Kornhaas Montage und Dienstleistung Ltd

Debtor Company

Ms Kornhaas

Respondent/managing Director

Procedural Posture

Preliminary Ruling (reference for a Preliminary Ruling) / Judgment of the Court of Justice of the European Union

Legal Issues

  1. 1 Whether an action against a managing director for reimbursement of payments made after insolvency falls within the scope of Article 4 of Regulation No 1346/2000
  2. 2 Whether such an action infringes Articles 49 and 54 TFEU on freedom of establishment

Ratio Decidendi

An action against a managing director for reimbursement of payments made after the company became insolvent, based on Paragraph 64(2) of the GmbHG, falls within the scope of Article 4 of Regulation No 1346/2000 as it is directly derived from and closely connected to insolvency proceedings. The application of such a provision to a managing director of a company established under the law of another Member State does not infringe Articles 49 and 54 TFEU, as it does not concern the formation or recognition of the company, but only the consequences of insolvency and director conduct after insolvency.

Court Disposition

Reference answered; national law provision applicable; no infringement of EU freedom of establishment.

Orders

  • Article 4 of Regulation No 1346/2000 applies to actions for reimbursement against managing directors for payments made after insolvency.
  • Articles 49 and 54 TFEU do not preclude the application of Paragraph 64(2) of the GmbHG to managing directors of companies established under the law of another Member State subject to insolvency proceedings in Germany.