Sangong law firm regularly receives inquiries from corporations in the course of incorporation asking whether they are allowed to deploy a managing director who is resident in a state outside of the European Union and aims to stay abroad.
In the past, the question has always been whether a person without a residence permit in Germany or a residence permit within the European Union can diligently exercise the duties of a managing director or whether this constitutes an order or registration impediment.
On the one hand, it was demanded that the managing director should always be able to enter the country at any time. On the other hand, it was argued that due to nowadays technic a managing director is enabled to conduct his business from anywhere abroad and to fulfill the legal obligations.
In the meantime, it has largely been clarified that the registration as managing director can not be made dependent on a residence permit (Higher Regional Court Düsseldorf, judgment of 16.04.2009 - Ref. I-3 Wx 85/09; Higher Regional Court Zweibrücken, order of 12.11.2010 - Ref. 20 W 370/10; Higher Regional Court Munich, order of 17.12.2009 - Ref. 31 Wx 142/09).
This is justified by the fact that the managing director has a large number of communication channels at his disposal to carry out his tasks. In addition, he can delegate a variety of tasks to his staff or external consultants. With regard to the most personal tasks, these can be performed before consular officers or foreign notaries. As a result, the courts noted that the legislature had to assume that there was a strong need to appoint a foreigner resident as managing director in order to take full advantage of the economic opportunities.
If you have any questions on this subject or other areas of residence and company law, then Sangong law firm will be at your disposal to answer your questions.
This text is available in German and Chinese. Just go to the News section on your preferred language.
In the past, the question has always been whether a person without a residence permit in Germany or a residence permit within the European Union can diligently exercise the duties of a managing director or whether this constitutes an order or registration impediment.
On the one hand, it was demanded that the managing director should always be able to enter the country at any time. On the other hand, it was argued that due to nowadays technic a managing director is enabled to conduct his business from anywhere abroad and to fulfill the legal obligations.
In the meantime, it has largely been clarified that the registration as managing director can not be made dependent on a residence permit (Higher Regional Court Düsseldorf, judgment of 16.04.2009 - Ref. I-3 Wx 85/09; Higher Regional Court Zweibrücken, order of 12.11.2010 - Ref. 20 W 370/10; Higher Regional Court Munich, order of 17.12.2009 - Ref. 31 Wx 142/09).
This is justified by the fact that the managing director has a large number of communication channels at his disposal to carry out his tasks. In addition, he can delegate a variety of tasks to his staff or external consultants. With regard to the most personal tasks, these can be performed before consular officers or foreign notaries. As a result, the courts noted that the legislature had to assume that there was a strong need to appoint a foreigner resident as managing director in order to take full advantage of the economic opportunities.
If you have any questions on this subject or other areas of residence and company law, then Sangong law firm will be at your disposal to answer your questions.
This text is available in German and Chinese. Just go to the News section on your preferred language.
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