Change of CEO in the company: quick facts

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information on how a change of director general of the company, know not all.

With the development of market relations in Russia and the collapse of the Soviet Union developed the Civil Code regulating civil legal relations in the Russian Federation.In addition, it was established and put into operation a large number of laws and regulations.

among Russian businessmen most popular commercial organizations, established in the form of a limited liability company (LLC).

prevalence of them in the first place due to the convenient mode of liability of the founders, which is limited by the size of contributions to the share capital of the company.

General Meeting of the founders of the company manages.Founders are going in accordance with the rules approved by the Charter of the Company.This document, which is the main and regulates the competence of the meeting and the sole executive body of the company.

The most common functions of the executive body in the Company carries out a CEO who provides the entire structure of the enterprise.As a result of economic activity it is he takes full responsibility.

executive body appointed by the general meeting of the company founders, who claim the proposed candidacy and define its terms of reference, as well as the amount of his remuneration and the activities of the enterprise.

Change General Director may be a consequence of various conditions.The Charter can be specified period that is subject to the powers of the Director.The possibility of re-election of the former head can be directly specified in the Constitution or missing - it is not mandatory section of the constituent instrument.

Change of Director General may occur for various reasons: personal letter of resignation on the initiative of the administrator, because long-term illness, and so on.

much worse, if the change of CEO in the company takes place after the expiration of the employment contract, but is that the position of the Charter provides for the mandatory change of the governing body of each, for example, three calendar years from the date of appointment.

Change of Director General for the initiative of the founders of the company says that they are not satisfied with the state of affairs in the company, which is fully independent from the executive body.

unsatisfactory position in the enterprise can be prevented if timely notify the founders.The Director General shall promptly respond to changes in market relations: to monitor market conditions, interaction with suppliers and customers, availability of debt the enterprise.If it is impossible to find solutions to problems on their own executive authority should be made aware of the general meeting of shareholders.

In some cases, the change of the general director can significantly change the position of the company.It all depends on how critical the situation at the enterprise.In the case of large accounts payable, when it is impossible to pay off debts on their own executive body is obliged by law to put the question of the bankruptcy of the enterprise.