This paper thoroughly analyses the position of the management board in a limited liability company, including the position of the board members, their powers, responsibilities and their liability. The first part of the paper analyses the term limited liability company together with a historical perspective of its establishment and definitions in comparative law. An emphasis is placed on the major influence of German law on Croatian law, in addition to the establishment of a limited liability company, shares, and registration into the court register. The second part describes the procedure of appointment of the management board members, such as qualifications needed to become one, its structure and operation. The necessity of the management board is also emphasized. Furthermore, the management board powers have been minutely elaborated. This includes the company management and representation towards third parties, as well as the relationship between the management board and other bodies of the company. The final part elaborates one the management board members' duties, including due diligence, liability, earnings, as well as the termination of their management board membership. The main aim of this paper is to acquire a comprehensive understanding and an overall picture of the management board of a limited liability company and its operational procedures.