Information Note on the Court’s case-law 10

September 1999

Klavdianos v. Greece (dec.) - 38841/97

Decision 21.9.1999 [Section III]

Article 1 of Protocol No. 1

Article 1 para. 1 of Protocol No. 1

Peaceful enjoyment of possessions

Applicant held personally responsible for his company’s tax obligations: partly admissible and partly inadmissible

In May 1986, the applicant resigned from the Board of Directors of a Gr eek company. In June 1986, the company was declared bankrupt and dissolved. An order to seize the applicant’s house was issued with a view to securing the payment of the company’s tax obligations. In September 1986, he unsuccessfully challenged the order b efore the administrative courts on the ground, inter alia , that he had resigned before the dissolution of the company and hence, according to the relevant law, could not be held personally responsible for it. However, on appeal he had the order of seizure declared invalid. In July 1988, the State appealed against this decision to the Supreme Administrative Court which, in May 1997, interpreted the relevant law to the applicant’s disadvantage. It held that managing directors having resigned before the dissol ution of their company remained liable until successors had taken office. The case was referred back to first instance for reconsideration. The case is still pending, as is the liquidation of the company’s assets. According to Greek legislation, foreign co mpanies subject to taxation in Greece have the same tax obligations as Greek companies save in one respect, i.e. its manager, Greek or non-Greek, bears no liability for the company’s tax debts. The applicant claimed to have continuously raised the substanc e of his Convention complaints before the domestic courts, which the Government contested.

Admissible under Article 6 § 1 (length).

Inadmissible under Article 1 of Protocol No. 1 and Article 14.

© Council of Europe/European Court of Human Rights This summary by the Registry does not bind the Court.

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