Entrepreneurial activity always involves risk. What many people are unaware of is that you don’t need to be the owner of a business to face such risks: under certain circumstances employees too can be personally liable, and this risk can be existential.
Managers’ liability means that the person who manages a company’s business is answerable with his or her own personal assets for poor decisions. In most cases this involves compensating the company, but there may also be liability to creditors or the tax authorities. Of course, not every poor decision inevitably results in personal liability. But the courts are drawing the margins of discretion ever more narrowly.