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Germany Vorstand

What is the difference between a Geschäftsführer and a Vorstand?

A Geschäftsführer (literally: "business leader") is the managing director of a GmbH. They are appointed by the shareholders and handle day-to-day management. A Vorstand is the management board of an AG – a more formal, multi-member executive body with defined legal responsibilities under German stock corporation law. The Vorstand is overseen by the Aufsichtsrat (supervisory board), a structure that has no direct US equivalent but is similar in concept to a board of directors combined with an audit committee.

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