Document background
The Managing Director Contract is a crucial document used when appointing executive leadership in Austrian companies, particularly in GmbHs and AGs. It serves as both an employment agreement and a corporate appointment document, reflecting the dual nature of the managing director's position under Austrian law. The contract must comply with specific requirements of Austrian corporate law, particularly the GmbHG, while addressing practical business needs. It includes comprehensive provisions on management authority, representation powers, remuneration structures, and termination rights. This document is especially important as managing directors in Austria have specific statutory duties and liabilities, and their relationship with the company differs from regular employment relationships. The contract typically requires shareholder approval and may need to be coordinated with supervisory board requirements in larger organizations.
