Geschäftsführungsbefugnis

Geschäftsführer is a German term that translates to "managing director" or "managing partner" in English. It refers to the person or persons legally responsible for the day-to-day management and operation of a business in Germany. The specific legal form of the company determines the exact rights and responsibilities of the Geschäftsführer. For example, in a GmbH (Gesellschaft mit beschränkter Haftung, equivalent to a limited liability company), the Geschäftsführer is appointed by the shareholders and is responsible for representing the company externally and managing its affairs. In a KG (Kommanditgesellschaft, limited partnership), the Komplementär (general partner) typically acts as the Geschäftsführer. The Geschäftsführer has a fiduciary duty to act in the best interests of the company and its shareholders. They are accountable for financial reporting, compliance with laws and regulations, and strategic decision-making. Depending on the company's size and structure, there can be one or multiple Geschäftsführern. Their powers and duties are often outlined in the company's articles of association.