Geschäftsführer (managing director)
A Geschäftsführer is the managing director of a German GmbH or UG - the legally appointed person who runs the company and represents it externally, comparable to a US CEO/managing member.
The Geschäftsführer is appointed by the shareholders and entered in the commercial register. They have statutory authority to represent the company, but also personal duties and potential liability for breaches such as unpaid taxes or delayed insolvency filing. A GmbH can have several Geschäftsführer, individually or jointly authorised. (In an AG, the equivalent role is held by the Vorstand, the management board.)
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Frequently asked questions
- Can a Geschäftsführer be personally liable?
- Yes, in defined situations - for example unpaid social-security contributions or taxes, or filing for insolvency too late. In normal business the GmbH's liability shield protects them, but breaches of their statutory duties can pierce it.
- Is a Geschäftsführer the same as an owner?
- Not necessarily. A Geschäftsführer can be a shareholder (Gesellschafter-Geschäftsführer) or an external hired manager. Ownership (shares) and management (the Geschäftsführer role) are separate.