Acronyms that contain the term vorstand
What does vorstand mean? This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: vorstand.
What does vorstand mean?
- In German corporate governance, a Vorstand is the management board of a corporation. It is hierarchically subordinate to the Aufsichtsrat, as German corporate law imposes a two-tier board system. German law confers power on the Vorstand as an organ. It is expected to act collectively and collegiately. In contrast to a board of directors in a United States or United Kingdom company, the Vorstand is not an adjunct to a Chief Executive Officer. In contrast to Japanese corporate governance, the Vorstand has a real decision-making power. It is, by law, the driving management of a company, and may not be instructed by any person or entity to act in a way that is injurious to the business. The members of the Vorstand are personally liable for accepting any such instructions. The specific scope of duties of a Vorstand varies from business to business. The head of the Vorstand, and the role of that office, is determined by the Aufsichtsrat. German law permits, but does not require, members of the Vorstand to elect a chairman from amongst their number. There are no specific legal requirements for the role of chairman, or even for the name of the office of chairman, although in practice the most common title is Sprecher with the implication that the chairman is no more than primus inter pares.