Engaging and terminating managing directors in Europe

Posted on 17th December, 2024
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Estimated reading time 1 minute

Alexandra Almeida Mota, a labor lawyer at BAS Portugal, shared her expertise in the publication "Engaging and Terminating Managing Directors in Europe," which provides insights from legal professionals across Europe.

The article, compiled by 33 employment lawyers across Europe, offers a high-level perspective on employment law considerations for engaging and terminating managing directors across Europe. BAS highlights the significant variations in employment laws between countries, impacting how managing directors are hired and terminated. Factors like employment status (employee vs. independent contractor) and contractual agreements significantly influence these processes.

While some countries favour employing managing directors as employees, others may utilise service agreements. Understanding the legal framework within each jurisdiction is crucial for both parent companies and subsidiaries. The document emphasises the importance of careful planning and adherence to legal procedures, including those related to board of director decisions, termination clauses (non-compete, non-solicitation, confidentiality), and post-termination arrangements.