Managing Director Service Agreement

For many entrepreneurs, collusion between themselves and their own businesses may be an unknown concept. But directors often have multiple roles. They often depend on the operation of the business and often have access to confidential information such as finances, customer requests and staff questions. They can also be shareholders. If the contract is concluded for an indeterminate period, a clause expressly containing the corresponding notice period is recommended for reasons of legal certainty. This is the specific date on which the termination may take place (for example.B. at the end of a month, at the end of a quarter) and the notice period to be respected for termination (for example. B 4 weeks before the written termination with effect at the end of the month, 6 weeks before the written termination with effect at the end of a quarter). If the termination period is not expressly set in the contract, German law first provides for a legal four-week notice for the external manager. This period increases – even very little – with the maintenance of employment (BGB).

When calculating the notice period, both parties: a longer notice period provides greater planning security, but at the same time complicates early termination of the contract should this become the desired approach. The manager of a limited liability company is, as is the company`s board of directors and the general meeting [1.6.2.4 Management pact] is a governing body of the company. Therefore, the manager does not have an employment contract with the company (for more information, see the managers` service contracts) and z.B. the employment contracts law, the working time law and the annual leave law are by no means applicable. An exception is the right to an officer`s pension, as set out in the Employees` Pension Act. The responsibility of the director is similar to that of the company`s board of directors. For more information, please see [1.6.5.1 Management Responsibility] and [1.6.5.2 Criminal Responsibility]. Yes, for example. B, the employment of a director is terminated without contrary agreement, their participation is not affected as a rule.

The director can then disrupt the transaction by imposing a veto on shareholder decisions or by deciding not to fulfill a director`s legal obligations. When a director is removed from his or her position, his or her employment may also continue. If the company`s organization was not responsible for the termination or termination of the employment contract, the employment is not considered to have been effectively terminated and the company will continue to owe contractual compensation without receiving benefits.