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Prohibition of issuing binding orders by the supervisory board to the management board of a limited liability company

Summary/Abstract: This article deals with the question of interpreting the concept of “issuing binding orders” contained in Article 219 § 2 of the Code of Commercial Companies. This concep thas been analyzed in terms of application of the relevant regulation in practice. In the article, the greatest attention is paid to the possibility of influencing the management board by the supervisory board in matters concerning the basic functioning of the discussed form of commercial law company. Considering the adopted practice of a “strong” management board and a “weak” supervisory board, the author focuses on analyzing Article 219 § 2 of the Commercial Companies Code in relation to the indicated practice and the admissibility of influencing the supervisory board on the management board’s activities regarding the conduct of the company’s affairs.

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