VIDEO: Difference between management and management

If a person is in charge of a company, he or she is also regularly in charge of the executive board. Conversely, however, not everyone who is in charge of management is also authorized to manage the company. Or to put it another way: the quality of the management is higher than that of the management.

Management is the legal representation of a company

• The difference is primarily of a legal nature. The concept of management characterizes that a certain person represents a company out of court and in court. This person is responsible for the company.
• In a sole proprietorship, the business owner acts as the managing director for the company and in the case of a GmbH, the managing director appointed by the shareholders' meeting acts for the Society. In the case of a stock corporation, on the other hand, the managing director is called the board of directors.
• The wording of the management, which is incumbent on the managing director by law, also regularly includes the management. To that extent there is initially no difference. Since one person cannot do everything, certain tasks are regularly delegated. In order to relieve himself, the managing director can, for example, transfer the management of the company to an authorized signatory or another person of trust.
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Branch operations often have a management team

• Nevertheless, the managing director remains legally responsible and in particular is responsible for what the person who is familiar with the management does. In practice, such a split can be found, for example, in a company that operates branches.


Difference - general power of attorney and power of attorney

You are right when you admit that you don't do everything yourself ...

• The company's managing director looks after the entire company, while he can delegate the management of the individual branches to a branch manager. The latter is responsible for the management of this branch, but only vis-à-vis the management.

The difference becomes clear in the person of the authorized signatory

• Conversely, the person entrusted with the management of the company can only legally represent the company insofar as the managing director has given him the relevant power of attorney. This power of attorney is largely defined in the law in the person of an authorized signatory or an authorized representative.
• However, he cannot carry out any tasks that the law has exclusively assigned to the managing director (Filing for bankruptcy, registering in the commercial register, signing balance sheets, liquidating the Company).