Distribution of work between board of directors, supervisory board and executive board

Plesner offers advice on any legal matter with respect to corporate governance and board activities, including rules on employee representation, distribution of work between executive board and board of directors and on how to act as board member in various situations to reduce the risk of management liability.

Public limited company management

In a public limited company, management duties comprise the day-to-day management, undertaken by the executive board, and general management, undertaken by the board of directors. The duty of the supervisory board is to supervise the executive board.

Board of directors and executive board

Where a public limited company has a board of directors and an executive board, the board of directors lays down the company's operational guidelines, including any investment and financing limits.

The executive board is charged with the day-to-day management of the company, the conclusion of agreements and with taking relevant measures subject to the instructions of the board of directors.  

Supervisory board and executive board

Where the model of a supervisory board and an executive board has been chosen, the executive board is in charge of day-to-day and general management, whereas the supervisory board supervises the executive board.

Private limited companies

Private limited companies have a choice of the same governance models as public limited companies, with the exception, however, that private limited companies can choose only one management body in the form of an executive board. In that case, the executive board is responsible for all management tasks.