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Drafting Rules of procedure of the Management Board, Supervisory Board and other bodies



> Our Law Firm provides the service of drafting Rules of procedure of the Management Board, Supervisory Board and other bodies of a company.

The Supervisory Board is a very important body of any company. It is a mandatory body for all joint stock companies, whereas limited liability companies are obligated to have a Supervisory Board only in some cases specified by the law.

Members of the Supervisory Board of joint stock companies are elected by the shareholders, whereas in limited liability companies, they are elected by the company members, resp. founders.

The main role of the Supervisory Board is to supervise work of the company’s Management and the way how it runs the operations of the company. The Supervisory Board presents supervision reports to the General Meeting of Shareholders in joint stock companies and to the company Assembly in limited liability companies.

The Management Board is in charge with representing the company and running its business. In joint stock companies, its members are appointed by the Supervisory Board. In limited liability companies, that do not have a Supervisory Board, the Management Board members are appointed by the founders, or the company Assembly.

The Supervisory Board may adopt the Rules of procedure to define in more detail tasks, responsibilities, organisation, mode of work and decision-making process of the Management Board within the corporate governance process, and other issues relevant for the work of the Management Board.

* The article is of an informative nature for the purpose of understanding a specific legal problem. It's not allowed to use the content without the permission of the LJUBIC Law Firm.

Members of the Supervisory Board of joint stock companies are elected by the shareholders, whereas in limited liability companies, they are elected by the company members, resp. founders.

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