one-tier board

A Societas Europaea may adopt either a two or one-tier board structure.

The precise system will depend upon whether the company operates a two-tier or one-tier board structure, but in essence there are three options:

In a one-tier board, all the directors (both executive directors as well as non-executive directors) form one board, called the board of directors.

It has a board of ten directors and maintain a one-tier board of directors consisting of both executive directors and non-executive directors (each a "director").

There are countries that have a one-tier board system (like the U.S.) and there are others that have a two-tier board system like Germany.

Or. en Justification Concerning liability, the different board structures in the EU (one-tier board and two-tier board) and thus different responsibilities must be taken into account.

This could be achieved in one of two defined ways: a two-tier board consisting of separate managing and supervisory boards (on the present German model), or a one-tier board (as at present in the UK) but with a split of the management and supervisory functions.