Compensation of the Board Members

Usually, the organ appointing the members of the board of directors also determines their compensation. Unless otherwise appointed in the company's articles of association, this organ is the general meeting of shareholders.

It is possible to insert into the articles of association provisions concerning the amount of and the grounds for the compensation. The compensation may be a fee for attendance at a meeting, fixed monthly or yearly compensation or a combination thereof. Compensation is commonly paid to members of the board of directors of limited liability companies.

When appointing the board of directors it is possible to determine that no compensation shall be paid. It is, however, not possible to deviate from a provision in the articles of association. In case the articles of association stipulate that board members shall be compensated, this may only be waived by amending the articles of association.