According to the Danish Companies Act, every limited liability company must have a management board, which consists of at least one person. This position is usually held by the owner of the company, although a board of one or more directors may be appointed.
An ApS company also has the option to create a board of directors. This is a good idea especially for larger companies with many employees. The management board is responsible for day-to-day operations and management, while the board of directors deals with the company’s strategy at a higher level. If a limited company has only a management board, it is usually the board that deals with strategic management and day-to-day operations. The governance structure is then set out in the company’s articles of association.
When management and the board of directors operate in parallel in a limited company, they have different responsibilities but still work closely together. The management board reports directly to the board of directors, which oversees the implementation of the overall strategy. If the board of directors is elected in a limited liability company, it is responsible for the election of the management board. However, if the board of directors is established after the executive board, it will often be the same people who sit on the executive board after its establishment.
Where the management board consists solely of the executive council, it acts as the company’s highest governing body – also responsible for strategic management. If necessary, the executive board can be replaced by the supervisory board.
