Towards the company he is obliged to exercise the diligence of a prudent entrepreneur. He must always have an accurate picture of the companie`s situation and inform himself about all relevant and economic circumstances. He must supervise the bookkeeping. A duty of supervision applies to the activities of co-managing directors. The German limited liability company act (GmbH-Gesetz) regulates specific duties of the managing director, which are highly relevant in the managing director’s practice. In particular, there is a duty to compensate if the managing director makes payments to the shareholders from the assets required to maintain the share capital. Liability may also be considered if the managing director fails to convene the shareholders‘ meeting in the event that 50% of the company’s share capital is lost, or if accounting regulations are violated.