At first glance, it seems paradoxical that the same person is both an employee and an executive. In the context of an employment contract, an employee is bound by a subordination relationship to the employer, while an officer is mandated by the company to act on his behalf as a legal representative. In addition, for limited liability companies, the manager is in principle the sole governing body. A shareholder pact may also give the manager the power to perform certain transactions without first consulting the company`s shareholders. This right is governed by the Corporations Act, so caution should be exercised when developing it. Commercial license on behalf of the manager A problem may arise if the company`s commercial license is granted on the condition that a designated staff member be appointed general manager. In such cases, it would be difficult to decide whether to dismiss the employee, as his dismissal would cancel the licence and would have economic repercussions, even temporary, on the company. Therefore, in this situation, a manager cannot be considered an ordinary worker, since he has a power over the employer that an ordinary worker would not occupy. (15) Contract of Service Managing Contract Agreement between ROFIN-SINAR Laser GmbH, represented by the general meeting of the partners, represented by Mr. [1) ROFIN-SINAR Laser GmbH, represented by the general meeting of shareholders, represented by Mr.
[GmbH” – below – “GmbH” – below “GmbH” – and (2) Mr Thomas Merk, [2) Mr Thomas Merk,  – `Mr Merk` – `Mr Merk` – `Mr Merk` – `Mr Merk` – pre-preamble Mr Merk Mr Merk accepted the appointment of Director General of the GmbH. Mr. Merk`s activity as manager of the LLC is based on the subsequent service contract, which governs the reciprocal rights and obligations of the contracting parties. Mr. Merk has been appointed Director General of the SARL. Mr. Merk has accepted his appointment as Director General of the SARL. Mr. Merk`s activity as manager of the LLC is based on the following management contract, which may enter into internal agreements on the extent or limitation of the manager`s powers. From a legal point of view, third parties have the right in principle to consider that the manager is entitled to hire him. Participations If the worker holds a significant shareholding in a limited liability company, it may be more difficult to provide conclusive evidence of a working relationship.
An employee who owns 22.4% of the company`s shares would not be considered an employee, particularly if he was the sole manager. The sale of the shares and the acceptance of an appointment as a Class B manager a few days before the signing of an employment contract would not be an acceptable solution and would not prove that the alleged employment relationship was genuine. (16) The most serious case is that directors may go bankrupt and be excluded from the position of officer.