The Board of Directors manages the daily operations of the housing company
A housing company must have a Board of Directors, which is responsible for the day-to-day operations of the company. The Board of Directors is responsible for the management of the company and the organisation of its operations. Minor activities may be undertaken by the Board of Directors within the limits of the approved budget. However, the Board of Directors may not, without a decision of the General Meeting, take any action which is unusual or far-reaching or which has a significant impact on housing or housing costs.
The Board of Directors shall consist of three to five regular members, unless otherwise provided for in the Articles of Association of a housing company. The Board of Directors is quorate when at least half of its members are present. However, the Articles of Association may require that more Members of the Board of Directors must be present. Unless the Articles of Association require a qualified majority, the Board of Directors takes its decisions by a majority vote.
The Manager is the CEO of the housing company
The company may have a managing director if the Articles of Association so provide or if the General Meeting so decides. The Board of Directors elects the Manager and supervises his/her activities. The manager is like the managing director of the housing company. He or she is responsible for the executive management of the company on a day-to-day basis, in accordance with the instructions and orders given by the Board of Directors.
Liability of the management
The Board of Directors and the Manager must act diligently to promote the best interests of the housing company. Both the Board of Directors and the Manager are liable under the Limited Liability Housing Companies Act for any damage caused by their negligence in the performance of their duties.
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