# Director liability and company insolvency in Georgia We defend company directors and partners — when the company is in debt, facing insolvency, or when a manager faces civil or criminal liability. We also protect creditors. - Confidential - Georgian · English · Russian - Free first consultation - Courts of all instances A director must manage the company's affairs in good faith and with reasonable care. If they breach this duty, they can be liable to the company for the damage, and in serious cases also criminally — for example, for abuse of authority in a company (Article 220), tax evasion or embezzlement. When a company can no longer pay its debts, insolvency proceedings can be both a way out — rehabilitation — and a risk. A timely legal assessment protects both the manager and the creditor. ## Our services - Assessing director and partner liability - Disputes between the company and its director - Insolvency: rehabilitation or liquidation - Creditors' claims and their protection - Criminal defence (Articles 220, 218, 182) - Company liquidation and obligations ## Questions & answers ### Is a director personally liable for an LLC's debts? Generally no — the company is liable with its own assets. But a director can be liable if they breached their duties and caused damage, or if a crime is established. ### The company can't pay its debts — what should I do? Assess the situation with a lawyer as early as possible: rehabilitation or an agreement with creditors may be better than liquidation. ### I'm a creditor — how do I protect my claim? Register the claim in the insolvency case on time and, if needed, ask the court for interim measures. ## Legal basis - [Law on Entrepreneurs](https://matsne.gov.ge/ka/document/view/5230186) - [Criminal Code of Georgia](https://matsne.gov.ge/ka/document/view/16426) - [Civil Code of Georgia](https://matsne.gov.ge/ka/document/view/31702) Official texts (in Georgian) — Legislative Herald of Georgia, matsne.gov.ge. ## Related topics - [#Business](https://mmlaw.ge/en/corporate-lawyer/) - [#Court cases](https://mmlaw.ge/en/civil-litigation-lawyer/) - - [Civil litigation lawyer](https://mmlaw.ge/en/civil-litigation-lawyer/) - - [Employment and labour lawyer](https://mmlaw.ge/en/employment-lawyer/) - - [Corporate lawyer](https://mmlaw.ge/en/corporate-lawyer/) - - [Intellectual property lawyer](https://mmlaw.ge/en/intellectual-property-lawyer/) - - [Registering an LLC in Georgia: what you need](https://mmlaw.ge/en/blog/how-to-register-llc-in-georgia/) - - [Tax lawyer](https://mmlaw.ge/en/tax-lawyer/) - - [Who is a judge? Courts and judges in Georgia](https://mmlaw.ge/en/blog/who-is-a-judge-in-georgia/) - - [Criminal defence lawyer](https://mmlaw.ge/en/criminal-defense-lawyer/) Practice areas ## Other practice areas - [Criminal defense](https://mmlaw.ge/en/criminal-defense-lawyer/) — Defense at every stage — from investigation and arrest to trial and appeal. - [Drug offences](https://mmlaw.ge/en/drug-crime-lawyer/) — Defence in cases of buying, possessing, selling and importing drugs — and against fines and administrative detention. - [Cybercrime](https://mmlaw.ge/en/cybercrime-lawyer/) — Defense in cybercrime cases and help for victims of online fraud, hacked accounts and blackmail. - [Property crimes](https://mmlaw.ge/en/property-crime-lawyer/) — Defence in theft, robbery, fraud, extortion, embezzlement and misappropriation cases. - [Economic crimes](https://mmlaw.ge/en/economic-crime-lawyer/) — Defence against tax evasion, money laundering, customs and other economic charges. - [Corruption and official crimes](https://mmlaw.ge/en/corruption-crime-lawyer/) — Defence in bribery, trading in influence and abuse of official power cases. - [Violent crimes](https://mmlaw.ge/en/violent-crime-lawyer/) — Defence in assault, bodily injury, threats and homicide cases — including self-defence. - [Juvenile justice](https://mmlaw.ge/en/juvenile-justice-lawyer/) — Specialised representation of minors, focused on their rights and future. - [Civil litigation](https://mmlaw.ge/en/civil-litigation-lawyer/) — Contract, property and damages disputes — negotiated or argued in court. - [Administrative law](https://mmlaw.ge/en/administrative-law-lawyer/) — Challenging decisions of public bodies, fines, permits and licences. - [Labor disputes](https://mmlaw.ge/en/employment-lawyer/) — Unlawful dismissal, unpaid wages and employment contracts — for employees and employers. - [Corporate law](https://mmlaw.ge/en/corporate-lawyer/) — Company formation, contracts, compliance and shareholder matters. - [Real estate](https://mmlaw.ge/en/real-estate-lawyer/) — Due diligence, purchase agreements, registration and property disputes. - [Family law](https://mmlaw.ge/en/family-lawyer/) — Divorce, custody, alimony and division of property — handled with discretion. - [Inheritance](https://mmlaw.ge/en/inheritance-lawyer/) — Accepting an inheritance, the certificate of inheritance, wills and disputes between heirs. - [Intellectual property](https://mmlaw.ge/en/intellectual-property-lawyer/) — Trademarks, copyright and protection of your creative and business assets. --- Source: https://mmlaw.ge/en/director-liability-and-insolvency/ · MMLAW · +995 551 00 43 00 · info@mmlaw.ge