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Organchaft

Organchaft is a legal concept in German law that refers to the attribution of actions and liability to a legal entity through its organs. An organ is a person or a body that has been vested with the authority to act on behalf of the organization in accordance with its statutes, charter, or governing rules. Common examples include corporate organs such as the managing directors (Geschäftsführung) and the executive board (Vorstand) in companies, the supervisory board (Aufsichtsrat), as well as the representative bodies in associations. In constitutional or public law, organs can be government ministries or other state institutions that act as the state’s functional units.

Under the Organchaft principle, acts performed by an organ within its authorized powers are treated as acts

The concept plays a central role in representation, governance, and liability. It clarifies when a legal entity’s

See also: organ (law), organträger, organhaftung, corporate governance, Vereinsrecht.

of
the
organization
itself.
This
means
that
the
organization
can
bind
itself
through
the
acts
of
its
organs,
and
it
can
be
held
responsible
for
damages
or
obligations
arising
from
those
acts.
At
the
same
time,
organ-level
liability
(personal
liability
of
organ
holders)
can
arise
in
cases
of
fault,
exceeding
authority,
or
breach
of
fiduciary
duties,
depending
on
the
applicable
rules
and
circumstances.
responsibility
lies
with
the
organization
as
a
whole
versus
with
individual
organ
holders.
Organchaft
also
appears
in
state-law
contexts,
where
it
describes
how
the
state
acts
through
its
organs
and
how
accountability
is
assigned
for
those
actions.