In board regulations (also referred to as management regulations) arrangements are set out between the directors at the administrative level. General affairs such as the division of responsibilities and duties and the entitlements within the board are on the agenda. Restrictions of the management authority can also be included, for example, with regard to transactions with a financial interest exceeding a specific amount.
In addition, it can be recorded how resolutions are adopted and what to do if the votes are tied and no majority can be reached. As a corollary to this, a form of dispute resolution is often recorded. For example, the engagement of an independent expert or proceedings at the enterprise division.
Board regulations are not mandatory for the incorporation of a company. However, it is advisable to record such arrangements in writing already at the incorporation.