The founding shareholders appoint the first auditor (Abschlußprüfer) and supervisory board (Aufsichtsrat), which in turn appoints the first management board (Vorstand). The appointment of the first auditor and supervisory board must be notarized.
The founding shareholders must also prepare a formation report with the relevant details of the establishment of the AG. This report has to be scrutinized by the boards.
The AG is managed by its management board. Neither supervisory board nor shareholders can exercise direct influence on the management board.