Responsibilities of the board (supervisory)
Is the predominant board structure for listed companies best categorised as one-tier or two-tier?
It is a one-tier or unitary board.
Board’s legal responsibilities
What are the board’s primary legal responsibilities?
For private limited companies, the Civil and Commercial Code (CCC) generally provides the scope of the legal responsibilities of directors. It puts the duties of directors into two main categories: duty of care and duty of loyalty.
For private limited companies concerning the duty of care, the CCC stipulates that the directors must apply care and prudence as businesspeople for the operation of a company’s business. Directors of private limited companies are jointly responsible for the:
- payment of shares by the shareholders actually being made;
- existence and regular keeping of the books and documents prescribed by…