A limited liability company is a company which can be founded by one or more natural or juristic persons and whose initial capital consists of basic inputs of partners. A company is established with a social contract while the partners are not responsible for the obligations that a limited liability company has. A smaller number of partners and stronger mutual connection allow partners to have more freedom in the regulation of relationships. For this reason, we can find a greater number of provisions that have a dispositive nature in the law and, in most cases, the law therefore refers to the option of a different regulation by a social contract. The rights and duties that the partners have in managing a company, as well as the manner of their implementation, are defined by a social contract, unless the law requires otherwise. The mandatory bodies in a company are the assembly of partners and one or more company managers but a company may also have a supervisory board, although this rarely occurs. The company manager has a status-legal position in the company, gained by an appointment (assigning to a position) and a contractual-legal position, gained on the basis of signing an employment contract (employment relationship) or on the basis of a management contract (obligation-legal relationship). The company manager independently represents the company and conducts its businesses, while being bound by the partners’ potential instructions. The law defines the competences of the company manager only in general, however, it can be determined by a social contract that the manager has other competences as well and that the manager can carry out work without being bound by the instructions of the partners. The partners may decide to have a complete control over the company and they may limit the competences of the manager to the legal minimum, in which case the manager only carries out the will of the partners. If the partners are not satisfied with the manager’s work, they may recall the manager before the end of the mandate. In fulfilling their function, the manager may be liable for the actions which have not been done with proper care and have caused a potential damage to the company, in most cases the damage liability is involved.
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