District Guild Association – Legal Status and Duties
Die District Guild Association (KH) is an organizational institution of the German skilled crafts sector. As a public law corporation, it assumes central responsibilities in the regional self-governance of the crafts and serves in particular as the administrative office for the affiliated guilds. The following explains in detail the legal basis, organization, duties, membership, financing, as well as supervision and relevant regulations.
Legal Foundations
Crafts and Trades Code as a Legal Source
The District Guild Association is regulated in German law by the Crafts and Trades Code (HwO) . The relevant statutory provisions are found particularly in §§ 86 ff. HwO. The formation, membership, and duties of the District Guild Association are derived directly from these regulations.
Status as a Public Law Corporation
A District Guild Association is constituted as a public law corporation. It acquires legal capacity through its statutes, based on the regulations of the guilds within the district of the respective chamber of crafts. Its tasks are therefore characterized by public law and it acts with official legitimacy within the legally assigned duties.
Organization of the District Guild Association
Members
According to § 86 HwO, all guilds within a particular regional district are required to be members of a District Guild Association. Thus, the members are not individuals or businesses but exclusively the guilds as independent crafts organizations.
Governing Bodies of the District Guild Association
The governing bodies of the District Guild Association according to § 89 HwO are:
- Die General Assembly (assembly of representatives of the affiliated guilds)
- Der District Master Craftsman (elected chairman)
- Der Executive Board (from among the guilds)
The specific structure and distribution of duties among the bodies are regulated by the statutes of the respective District Guild Association.
Management
Current business operations, in particular external representation, are generally managed through the business office. The management is the responsibility of the District Master Craftsman and the full-time managing director.
Duties and Obligations
The District Guild Association performs a range of duties pursuant to § 88 HwO, including:
Support of Guilds
It supports the affiliated guilds in fulfilling their statutory and statutory duties, especially in administrative matters, the promotion of young talent, and training issues.
Promotion of Collective Interests
The District Guild Association promotes the economic, social, and professional interests of independent crafts businesses and craft-related trades at the regional level.
Representation of Guilds and Crafts
Externally, the District Guild Association represents the totality of its affiliated guilds before authorities, courts, and other institutions, as long as these duties have been expressly assigned to it by the statutes or by mandate.
Organizing Events and Public Relations
It is responsible for organizing specialist events, information events, and conducting public relations on behalf of the crafts in the district.
Public Law Duties
This includes, in particular, the administration of registration documents for the register of training relationships as well as conducting journeyman’s examinations (as provided for by regulations or statutes).
Membership and Affiliation
Compulsory Membership of the Guilds
According to § 86 para. 1 HwO, there is a statutory compulsory membership for the guilds within a specific district in the District Guild Association.
Admission and Withdrawal
The admission of new guilds is carried out in accordance with the provisions of the statutes of the District Guild Association. Withdrawal or dissolution is possible under certain conditions and is also governed by the statutory regulations as well as the provisions of the Crafts and Trades Code.
Financing
Contribution System
The financial resources of the District Guild Association are provided by compulsory contributions from the member guilds. The amount and distribution of contributions are specified in the contribution regulations established by the general assembly. Furthermore, the District Guild Association may generate income from services or events.
Budgetary Management
Budgetary management and accounting are subject to the requirements of the Crafts and Trades Code as well as the organization’s own statutes. An annual audit is provided for.
Supervision and Control
Supervision by the Chambers of Crafts
The District Guild Association is subject to the supervision of the chamber of crafts responsible for the respective district. This supervision includes, in particular, the review of compliance with statutory requirements, oversees the legality of resolutions, and, in the event of violations, can initiate supervisory measures.
Control by Internal Bodies
Furthermore, the executive board and management are subject to internal control by the general assembly and any audit bodies stipulated in the statutes.
Relevant Legal Regulations and Further Provisions
- Crafts and Trades Code (HwO), especially §§ 54 ff. (Guilds), §§ 86 ff. HwO (District Guild Associations)
- Statutes of the respective District Guild Association
- Contribution regulations and rules of procedure of the general assembly
Distinction from Other Organizations
Unlike the Chamber of Crafts (public law corporation with legal oversight of all crafts in a district) and the State Guild/Association Guild , the District Guild Association is established as a regional corporation whose main function is the support and coordination of local guilds at the district level.
Summary
The District Guild Association is a central organizational element in the administrative system of German crafts. It is regulated as a public law corporation in the Crafts and Trades Code, supports and represents its member guilds, assumes legally defined tasks, and is subject to the supervision of the chambers of crafts. Its specific structure and interaction with other self-governing crafts institutions are extensively governed by its statutes and by the Crafts and Trades Code.
See also:
- [Innung (Handwerk)]
- [Handwerkskammer]
- [Handwerksrecht in Deutschland]
(Sources: Crafts and Trades Code (HwO), statutes of the District Guild Associations, information portals of crafts organizations)
Frequently Asked Questions
What is the legal status of the District Guild Association within the craft organizations?
According to § 86 ff. Crafts and Trades Code (HwO), the District Guild Association is a private law corporation established based on statutes by the guilds of a given district. It is legally independent and acts in its own name, so it may sue and be sued (§ 89 para. 2 HwO). Its tasks and legal position within the crafts are clearly defined by law: It represents the interests of its affiliated guilds before authorities and organizations and also has regulatory and administrative duties, insofar as these have been assigned to it by the statutes or by delegation. The District Guild Association is therefore not a state authority, but is subject to governmental supervision, for example by the relevant chamber of crafts. It does not perform sovereign tasks, but promotes and coordinates the interests of its affiliated guilds. Its legal position as a corporation also entails obligations, such as compliance with association law, statutory law, and data protection.
What governing structure is legally prescribed for the District Guild Association?
The Crafts and Trades Code stipulates in § 89 HwO that the District Guild Association is represented by the executive board and the District Master Craftsman. The executive board regularly consists of elected representatives of the member guilds. This structure is outlined in the statutes and is democratically legitimized through internal elections. The District Master Craftsman acts as the chairman of the executive board and legal representative of the District Guild Association in legal dealings. Management duties may also be carried out by a full-time managing director, whose rights and obligations are set out in the employment contract and, if applicable, in the statutes. In addition, there is often a general assembly, which makes basic decisions and elects or approves the bodies. It is legally relevant that all activities of the bodies must be based on the rights and obligations assigned according to the statutes and rules of procedure.
How is guild membership in the District Guild Association legally regulated?
Membership of guilds in a District Guild Association is generally voluntary according to § 87 HwO and is acquired by resolution of the respective guild. Admission requires the accession of the guild in accordance with the statutes of the District Guild Association. The modalities of admission, withdrawal, and expulsion are regulated in the statutes, which must take into account the legal framework of association law (BGB §§ 21 ff.). Admission of new guilds is usually decided by the general assembly or the executive board of the District Guild Association. There is no requirement to join a District Guild Association; guilds may also end their membership, which must be done in accordance with the statute-defined deadlines and procedures. Disputes regarding membership rights are subject to ordinary legal process unless the statutes provide for internal arbitration.
What statutory responsibilities does the District Guild Association have?
According to §§ 86, 88, and 91 HwO, the District Guild Association is responsible for representing the collective interests of the guilds in its district. It performs administrative tasks insofar as these are in the interest of the member guilds or are agreed in the statutes. These include, for example, organizing and conducting journeyman’s examinations (if assigned by the guilds), representing crafts interests before authorities, coordinating training matters, public relations, and consulting for affiliated businesses. It may also mediate disputes between guild members and often takes on advisory and supportive roles in labor law or collective bargaining matters. Statutorily mandatory tasks may be extended by statute, but not restricted. In fulfilling its responsibilities, the District Guild Association acts as a trustee and is accountable to its members.
How is the District Guild Association financed by law, and what transparency obligations exist?
Financing of the District Guild Association is provided, pursuant to § 91 HwO, mainly through contributions from affiliated guilds. The rules regarding contributions, calculation basis, and amount are established in the statutes and decided by the general assembly. Additional fees may be charged for certain services, if so provided for in the statutes. The District Guild Association is required to draw up an annual budget, which must be approved by the general assembly. There is a comprehensive obligation of accountability: The executive board must present annual financial statements to the general assembly for approval. Accounting is also subject to review, usually by guild auditors or an external auditor. The duty of transparency also results from association law: Every member may request information on the use of funds and, if necessary, seek judicial review of financial management.
What legal conditions apply to cooperation with public entities?
The District Guild Association, as a private law corporation, does not directly exercise public authority, but may, under statutory task assignment, cooperate with public entities such as local authorities, chambers of crafts, or vocational training institutions. According to § 91 HwO, it may take on certain public tasks, for example in vocational training or master craftsman examinations, if these are assigned by the competent guild or chamber. In doing so, it is subject to relevant data protection and administrative law provisions, especially regarding the handling of personal data and the awarding of public contracts. Any cooperation or assignment of sovereign tasks must have a statutory or regulatory basis, whereby supervision by the chamber of crafts ensures that the District Guild Association does not exceed its competences.
What legal remedies and control options are available in disputes within or with the District Guild Association?
Disputes concerning internal matters of the District Guild Association or its relationship with member guilds are initially addressed using the internal legal remedies provided in the statutes, often through mediation or an arbitration tribunal. Only after these procedures are exhausted may recourse be made to the ordinary courts. If the District Guild Association undertakes tasks as a delegated agent for the public sector, administrative courts may have jurisdiction. Governmental supervision by the chambers of crafts serves as an additional corrective, as they may intervene in case of statutory or legal violations. The general assembly also has oversight rights over the executive board and management, including the discharge and, if necessary, removal from office. If third-party interests are affected, those involved have access to the usual civil injunctions and damage claims.
