Agreement Of Managing Director

The provisions of the sarl essentially concern the competence and responsibility of the manager vis-à-vis the company, the board of directors and the shareholders. It is therefore necessary to conclude a written agreement on the matters of the manager`s office. The agreement may, inter alia, lay down the conditions of remuneration, leave and retirement, the mandate, the conditions of termination and the indemnity to be paid at the end of the operation. A well-developed agreement provides clear rules and binds the CEO to the company. Every business has different needs. If the manager remains unemployed at the end of the employment contract, he is entitled to unemployment benefit calculated on the basis of his previous salary, provided that he is a party to the unemployment benefit company. For more information, see Manager Service Contracts. Other rights and obligations between the company and its managing director are defined in an agreement between the parties. Even if the Employment Contracts Act is not applicable to managers, such laws can of course be incorporated into the employment contract by reference. The employment contract could provide, for example.B. that the manager`s leave entitlements are calculated in accordance with the Annual Leave Act. The managing director of a limited liability company is a management body of the company in the same way as the board of directors of the company and the general meeting of shareholders [1.6.2.4 Management agreement].

Therefore, the manager does not have an employment contract with the company (for more information, see the service contracts of the managers) and z.B. The Employment Contract Act, the Working Time Act and the Annual Leave Act are completely not applicable. The right to a pension of a manager, established under the Workers` Pensions Act, is an exception. The responsibility of the manager is similar to that of the board of directors of the company. For more information, see [1.6.5.1 Management responsibility] and [1.6.5.2 Criminal liability]. For both the company and the manager, it is very important that the manager`s service contract is carefully drawn up. The service contract governs the rights and obligations of the manager and the company. It is customary for the service contract to provide that the manager`s remuneration is, at least in part, in the form of options or shares. Such remuneration agreements should be clearly defined in the service contract.

The employment contract should also specify what will happen to the termination of the contract, in the first place the period of notice of the manager, the compensation for the termination of the contract and possibly the relocation.