Paper examines the characteristics of the service contract of the board member of a joint-stock company and limited liability company. This contract regulates the mutual rights and obligations of the member of the board, or managing director and the company. Croatian legal system allows the parties to regulate mutual relations either through the employment contract or some other type of contract regulated by the contract law, the managerial contract. The managerial contract is known by the autonomous law and its content has been crystallized in practice. The aim of this paper is to methodically present the characteristics of the contractual relation between the board member and the company and to point out the issues that might create some ambiguities in practice. Firstly, the paper discusses its legal nature, attempting to answer the question of whether it is an employment contract, a service contract, or some other type of contract regulated by the contract law. Key aspects of the relation between the managerial contract and other internal acts of the company are exposed thereat. The paper then defines the parties to the contract and states which body of the company is recognized by law as the agent of the company in the conclusion of a said contract. Considering the content of the managerial contract is not defined by the legislation, this paper presents its possible content. Moreover, it scrutinizes the issues concerning the court jurisdiction in disputes that may arise in regard to the contract. Finally, the means of termination of the contract are outlined and each of them is explained.