Name given to the body which conducts the business of various legal entities, especially public limited companies, savings banks and co-operatives.
From the industrial relations point of view, it is the management board of a public limited company (Aktiengesellschaft) which is of particular relevance. Members of the board are appointed by the supervisory board for a maximum term of five years; as a rule, the supervisory board also concludes an agreement (Anstellungsvertrag) with each board member appointed, specifying terms and conditions such as the assignment of a particular area of responsibility with the corresponding tasks, working hours, remuneration, occupational pension, sick pay, etc. According to prevailing legal opinion and established case-law members of the management board are not employees, and according to recent rulings by the Supreme Court of Justice they are not even to be classed as persons treated in law as similar to employees. Consequently, as a general principle they are not covered by the statutory provisions of labour law. They are, however, subject like employees to compulsory health, industrial injuries and pensions insurance under the state scheme regulated by the General Social Insurance Act.