In this assignment we will review such a controversial role like the one on top of the hierarchical structure of any corporation, the Managing Director. For management students it is often the final career goal when they start their business university degrees. Many business schools help by mystifying the MD position and by promising endless rewards, both economically and socially, for those fortunate enough to do what it takes to get to the top. However only those currently in a MD’s role see and feel the risks associated with such a responsibility. Exactly the part of the tale nobody tells dreaming business students and talented young managers about.
Our goal with this assignment will be to help develop further understanding about the MD’s role by focusing on one of the most unknown sides of this corporate position: the liability (or better expressed, the many liabilities) to which the MD is exposed. Often associated with money, power and status, MDs sit in a very critical position in which mistakes, either actively or passively, can directly lead to serious personal liability in front of the justice which, in some cases, has brought personal discredit to famous CEOs in Germany as well as in many other countries around the world.
The framework for our research will be a specific type of company, the so called GmbH which play a central role within the German tax and legal systems and which are similar to the Ltd. companies in the Anglo-Saxon world. We will introduce the GmbH a bit more into detail in the next section of this assignment.
Our methodology will be based on the use of legal specialist literature to be able to understand different juristic concepts and value their influence on the MD’s role. For that we will use direct or indirect citations and personal reflections which will add value to our observations. In the conclusions section we will look backwards and will try to objectively assess if, as many see, the job of a MD is always a safe and quite path complemented by expensive company cars, fat paychecks, bonus or power to decide or if MDs receive all the before mentioned perks as compensation for a high-risk high intellectually demanding position.
Inhaltsverzeichnis (Table of Contents)
- I. LIST OF ABBREVIATIONS
- II. LIST OF GRAPHICS
- III. PREFACE
- 1. INTRODUCTION
- 2. THE GMBH IN THE GERMAN LEGAL SYSTEM
- 3. THE CONCEPT OF BUSINESS LIABILITY
- 4. THE MANAGING DIRECTOR'S ROLE
- 5. LIABILITIES OF A MANAGING DIRECTOR
- 6. TYPES OF LIABILITY
- 6.1. INTERNAL LIABILITY
- 6.2. EXTERNAL LIABILITY
- 7. CRIMINAL & ADMINISTRATIVE LIABILITY
- 8. CONCLUSIONS
- 9. REFERENCES
- 10. INTERNET REFERENCES
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment explores the liabilities of a managing director (MD) in a German GmbH (limited liability company). It analyzes the MD's role within the legal framework of the GmbH and examines the different types of liability they face, including internal, external, criminal, and administrative liability. This analysis aims to provide a comprehensive overview of the legal challenges and responsibilities associated with the position of MD.
- The legal framework of the GmbH in Germany
- The different types of liability faced by managing directors
- The specific responsibilities and legal obligations of managing directors
- The implications of managing director liability for business operations and decision-making
- Potential legal consequences for managing directors who fail to fulfill their responsibilities
Zusammenfassung der Kapitel (Chapter Summaries)
- 1. INTRODUCTION: This chapter sets the stage for the assignment by providing a brief introduction to the topic of managing director liability in German GmbHs. It highlights the significance of understanding the legal framework within which MDs operate and the potential consequences of their actions.
- 2. THE GMBH IN THE GERMAN LEGAL SYSTEM: This chapter delves into the legal structure of the GmbH in Germany, providing a comprehensive overview of its establishment, operation, and legal framework. It outlines the distinct features of the GmbH and its legal context within the German legal system.
- 3. THE CONCEPT OF BUSINESS LIABILITY: This chapter focuses on the concept of business liability, exploring the various legal principles that govern the liability of businesses and their stakeholders. It examines the different types of business liability and the circumstances under which liability can be incurred.
- 4. THE MANAGING DIRECTOR'S ROLE: This chapter analyzes the specific role and responsibilities of a managing director within a GmbH. It examines their legal position, their decision-making authority, and their obligations towards the company and its stakeholders.
- 5. LIABILITIES OF A MANAGING DIRECTOR: This chapter explores the different types of liabilities that a managing director can face. It examines the potential legal consequences of their actions and the factors that can contribute to their liability.
- 6. TYPES OF LIABILITY: This chapter provides a detailed analysis of the different types of liability faced by managing directors, including internal liability (liability towards the company itself) and external liability (liability towards third parties). It examines the legal principles and specific cases that illustrate the various types of liability.
Schlüsselwörter (Keywords)
This study focuses on the legal framework of the German GmbH, the managing director's role within the company, and the different types of liability they face. Key concepts include *GmbH*, *Geschellschaft mit beschränkter Haftung*, *Managing Director*, *Internal Liability*, *External Liability*, *Criminal & Administrative Liability*, *German Legal System*, *Business Liability* and *Legal Framework*.
- Quote paper
- Santiago Mas (Author), 2016, Liabilities of the Managing Director in a German GmbH, Munich, GRIN Verlag, https://www.grin.com/document/437668
