The selection and appointment (and dismissal) of the management board is one of the most important tasks or responsibilities of the supervisory board. The Chairman and Members of the Board are appointed by the Supervisory Board pursuant to Article 268 of the Companies Act. A supervisory board must select a competent management board that will run the company successfully.
It is recommended that the supervisory board defines the procedure to select the management board in its Rules of Procedure or any other document. Professionally conducted procedures and criteria for recruitment of the management board are in the interest of supervisory bodies, as they enable argumentation for their selection and the implementation of due diligence, while rejecting any doubts as to their professional conduct and references as well as the suitability of their selection.