Board member

A board member sits on the management board (juhatus) of an OÜ. The board manages the company and represents it, so board members sign contracts, keep the company’s records in order and submit the annual report. An OÜ must have at least one board member, and board members are listed publicly in the e-Business Register.

Being a board member and being a shareholder are separate roles. In a one-person company the same person usually holds both, but each role has its own duties and its own tax treatment when money is paid out.

A board member can be paid a board member fee, which is taxed differently from salary or dividends. Compare them in Dividends, board member fees or salary and in the payout calculator.

Where the board makes its decisions can also matter for tax: see place of effective management.