Document background
The Directors Contract Of Employment is a crucial document used when appointing managing directors (Geschäftsführer) in German companies, whether in a GmbH (limited liability company) or AG (stock corporation). This contract is essential for establishing clear terms of employment while adhering to German corporate and employment law requirements. It's typically implemented when appointing new directors, promoting internal candidates to director positions, or revising existing director agreements to ensure compliance with current legislation. The document encompasses comprehensive provisions regarding appointment terms, duties, remuneration, benefits, and post-termination obligations, while addressing specific German legal requirements such as corporate authorization, social security considerations, and statutory compliance obligations. It's particularly important as it must balance the director's dual role as both a corporate officer and an employee, incorporating appropriate protections and obligations for both the company and the director under German law.
