Purpose and Grounds for Creating a Supervisory Board
A supervisory (board of directors) body exists in a Georgian entrepreneur entity to exercise control over the activity of its governing organ or persons. Under the Georgian Law on Entrepreneurs, an entity may have a supervisory board in the cases provided by law or by its charter, while in the case defined by law — for state-owned enterprises operating critical infrastructure — the creation of the board is mandatory (Article 46, parts 1 and 7). The board controls the activity of the governing organ, yet the functions of the governing organ may not be transferred to it, except in a case provided by law (part 2).
For a limited liability company the rule is explicit: an LLC creates a supervisory board where the law or the charter provides for its existence (Article 125, part 1). The rules governing the supervisory board of a joint-stock company apply to such a board correspondingly, unless the charter provides otherwise (part 2). A board meeting is decisive if a majority of the members attend, and the board takes decisions by a majority of votes unless the charter requires a greater number (Article 46, part 3).