Supervisory Board and Executives of LLC

The charter of a company may provide for the formation of a supervisory board. This body may possess competence with respect to matters of formation of the executive bodies of a company, conclusion of large-scale transactions, and convocation of the general meeting. The members of executive bodies cannot participate in the supervisory board. No delegation of members’ votes is allowed.[1] The general meeting elects a director or the members of the directorate that are responsible for the business management of the company for the term stipulated by the charter. The scope of the executive authority is specified in the charter and by-laws of the company, but cannot include matters within the exclusive power of the general meeting or supervisory board.[2]

[1] Article 38, Business Companies Act.

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Supervisory Board and Executives of LLC

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