Managing Director / Management
Introduction
In the corporate world, management plays a central role. It is responsible for the management and administration of a company and makes decisions that significantly influence the course and success of the company. In this article we will take an in-depth look at the role, duties and importance of the management and the managing director.
Definition
Management refers to the body of a company that is responsible for the management of the company. In legal terms, the managing director is the natural person entrusted with managing the business of a company, in particular a limited liability company (LLC).
Legal basis
In Germany, the duties and obligations of management are governed by various laws, in particular the GmbH Act (GmbHG) for the managing directors of limited liability companies (GmbHs) and the Stock Corporation Act (AktG) for the members of the management boards of stock corporations (AGs).
Tasks and duties
Management of the company
The Management Board is responsible for the operational management of the Company. This includes developing strategies, implementing business plans and monitoring business processes.
Representation
The managing director represents the company externally and is often the face of the company. He concludes contracts and enters into negotiations with business partners, customers and other stakeholders.
Reporting and documentation
The management is obliged to report regularly on the development of the business and to keep the necessary documents and records.
Compliance
Management must ensure that the Company complies with legal requirements and internal policies.
Personnel responsibility
Management is responsible for personnel decisions, including hiring and firing employees and determining their compensation.
Liability
Managing directors have a duty of loyalty to the company and must perform their duties with the care of a prudent businessman. In the event of breaches of duty, they may be held personally liable.
Remuneration
Executive compensation varies depending on the size and form of the company. It often consists of a fixed salary and variable components such as bonuses and stock options.
Differences between managing director and board of directors
While the managing director typically works in a limited liability company, the management board is the governing body of a stock corporation. The duties are similar, but there are differences in legal design and liability.
Challenges and criticism
CEOs often face a variety of challenges, such as dealing with economic volatility, adapting to technological changes, and managing conflicts with stakeholders. Criticism of management can relate to various aspects, such as compensation policy, strategic decisions or crisis management.
Significance for the company
Management plays a crucial role in the success of a company. Effective management can help increase productivity, strengthen market position and create value for stakeholders.
Conclusion
The management is a central body in the corporate structure. The general manager bears an enormous responsibility and must fulfill a multitude of tasks and duties in order to successfully manage the company. The role requires technical expertise as well as leadership skills and a high level of accountability.