Termination of organ position

According to Section 84 Para. 1 sentence 5 in conjunction with Sentence 1 AktG, the employment contract of the board of directors of a stock corporation is concluded for a maximum of five years.

According to a decision of the Fifth Senate of August 26, 2009 (5 AZR 522/08), a contract concluded for an indefinite period is legally limited to five years. Within the time limit, a mutually agreed change to the content of the contract is possible.

The agreement of an employment relationship in the employment contract beyond the term of the employment contract and the position on a board is not generally governed by Section 84 Para. 1 AktG excluded. Early commitment can be sensible and useful for both parties if the rights and obligations under the employment contract are determined at the same time. However, there is an objective circumvention of the law if the employment contract stipulates that, in the event of termination of the position on a board, the employment relationship remains unchanged as an employment relationship beyond the periods specified in Section 84 Paragraph. 1 AktG.

If a specific job that corresponds to the remuneration is neither agreed upon nor even realistic, the situation specified in Section 84 Para. 1 AktG just excludes binding.