Management understandable & narrowly defined
The management designates the highest management level of a company and is responsible for the overall strategic concept. Depending on the entrepreneurial legal form, the structure and legal responsibility of a management differs.
The term management is a concept from the legal doctrine, which is called the organ or the management of a society. The management represents the company externally and is in charge of managing the business within the company.
Tasks of the management
The management is responsible for the successful management of the business, including operational and strategic business. In addition to the smooth running of day-to-day business, the management must also rethink the strategic direction of the company in the following financial years. Ask for the positioning in the markets, assessment of opportunities and risks of investment potential, composition of the product portfolio, sourcing strategies, building a positive corporate image and a coherent marketing strategy and ensuring the innovation will ensure the continued existence of the company in the coming years in the light of the corporate purpose ,
The management authority depends on the legal form of the company. In the case of a stock corporation, the management board is responsible for managing the business; it is controlled by the supervisory board. In a GmbH, the managing directors are responsible for the management of the company. The managing directors of the GmbH are subject to an authority of the shareholders, which distinguishes them from the boards of a corporation. Managing directors are usually called up for a fixed period of time; they receive a contract of employment and a managing director’s salary. They represent the company through their legal actions (representation rights).
Duty of care, liability and discharge
Managers must observe due diligence and must deal with the affairs of the company with the diligence of a proper businessman. They must ensure that the company behaves lawfully and performs its duties (example: preparation of annual accounts). If the managing directors of a GmbH do not fulfill their obligations, they are liable in solidarity for the damage incurred. At the annual shareholders’ meeting (AG: Annual General Meeting), the managing directors and board members are discharged.
– The term management is an indefinite concept of law, which describes the function of the management or the body of a society
– the management represents the company externally and is also responsible for the successful management of the business within
– the management of a corporation is the executive board with the chairman of the executive board, the management of a limited liability company are the managing directors
– Managers have a due diligence to the company, the due diligence is violated, the managing director may have to adhere
The ability to work is enshrined in the Civil Code and indicates the ability of a person to engage in and conduct business. Depending on the type of business ability one distinguishes not capable, limited and fully competent.
Business ability is the ability to make and receive legally binding declarations of intent. In Germany, the ability to work is classified as “unlimited”, “limited” and “unfit for business” due to the age and mental state of persons.
Unlimited business ability
As a rule, the unrestricted ability to work is reached at the age of majority. Persons are then authorized to freely submit and accept declarations of intent. Declarations of intent primarily serve to conclude a contract in the context of a purchase transaction, an employment relationship or rents.