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Executive — Separation & Representation

Legal representation for managing-director and board-member separations.

APOS Legal represents companies on the separation and removal of managing directors (GmbH) and board members (AG) under German law — from a clean termination of the service contract via D&O coverage to the full executive separation agreement. The competent forum is typically the regional court (Landgericht) at the seat of the company, not the labour court — because board members and managing directors are not employees but corporate organs.

Specialist attorney Fatih Bektas spent more than 14 years as CEO, CFO and COO in FinTech and construction. Negotiations on executive separations therefore run from the perspective of corporate leadership — not only legally, but commercially and operationally.

Note on the legal area: Managing-director and board-member contracts are service contracts under § 611 BGB, not employment contracts — so executive separations are strictly speaking service-contract and corporate law, not employment law in the narrow sense. We nevertheless cover this area as extended expertise: the client interface (supervisory board, management, HR), separation logic and negotiation setting mirror the employment-law termination mandate. Fatih Bektas’s additional C-level experience makes this cross-field particularly workable.
Competent court
Regional court (Landgericht), chamber for commercial matters (§ 95 (1) no. 4a GVG) — not the labour court.
GmbH removal
Resolution of the shareholders meeting, § 38 (1) GmbHG; possible any time unless the articles of association restrict.
AG removal
By the supervisory board, only for important cause (§ 84 (4) AktG); contract term may outlast the office.
Tax optimisation
One-fifth rule under § 34 EStG for one-off severance payments — structuring is a negotiation lever.
Services

Six building blocks for a clean executive separation

Every executive separation is built from the same blocks — the craft lies in the sequencing, the interlocking and the negotiation lead.

Block 01

Removal from office

Preparation and execution of the removal: shareholder / supervisory-board resolution, hearing, unwinding of the office, documentation.

Separation of corporate office and service contract — strategically distinct or jointly settled.

§ 38 GmbHG§ 84 (4) AktG
Block 02

Terminate the service contract

Notice, settlement or expiry of the service contract — with a clean cut-off against any continued-employment risk.

Review of minimum terms, run-out compensation and severance structure.

§§ 611, 626 BGBproportionality review
Block 03

Secure D&O coverage

Review of policies for retroactive date, extended reporting, side-A cover and run-off options at separation.

Coordination with insurers and brokers, avoidance of coverage gaps for legacy facts.

claims-maderun-offside-A
Block 04

Variable compensation & LTI

Legally sound drafting of bonus, STI and LTI rules on early termination.

Tax-optimal severance structuring under the German one-fifth rule.

BGH case law§ 34 EStG
Block 05

Non-compete clauses

Post-contractual non-compete and customer-protection clauses that survive proportionality review.

Compensation payment (Karenzentschädigung) structured practically, or waived at separation.

§§ 74 et seq. HGB (analog)reasonableness
Block 06

Separation agreement

Executive separation in one document: service contract, corporate office, compensation, D&O, non-compete, reference, PR language.

Negotiation lead opposite the executive’s counsel.

one-document settlement
Häufige Fragen

Was Arbeitgeber immer wieder fragen

  • Managing directors of a GmbH and board members of an AG are not employees for the purposes of German labour law — they are corporate organs. Disputes arising from their service contract are therefore not heard before the labour court (Arbeitsgericht) but before the regional court (Landgericht), typically the chamber for commercial matters (Kammer für Handelssachen, § 95 (1) no. 4a GVG). The competent regional court is usually the one at the registered seat of the company.

Request advice

Discreet, strategic, executive-experienced

Executive separations are often time-critical and always confidential. Book an online first-advice meeting or reach us directly by phone or email.

The content of this website informs generally about German employment law from an employer perspective and does not replace individual legal advice. A client relationship with APOS Legal Rechtsanwaltsgesellschaft mbH & Co. KG arises only upon written mandate.