Procedure for appointing a CEO
Posted: Sat Jan 18, 2025 5:19 am
The CEO is appointed either by a general meeting of founders or by the board of directors, depending on the company's statutory provisions. This position may be filled by an employee of the company or an external specialist.
The employer of the CEO is the company represented by one of its participants. As a rule, the employment contract is concluded for a certain period, which is specified in the charter and the decision on the appointment.
After the appointment of this specialist, appropriate changes are made to the unified state register of legal entities to notify the authorities and contractors about the selection of a new head of the company.
If the company has only one participant, he can appoint himself as CEO. However, it is unclear whether he should enter into an employment contract with himself.
Competent authorities, such as the Ministry chinese thailand data package of Labor and the Federal Service for Labor and Employment, claim that concluding an employment contract with oneself is unacceptable. The fact is that this action is contrary to the law, which prohibits one person from concluding an employment contract on behalf of both the employee and the employer.
However, from the point of view of the Ministry of Finance, labor relations arise in any case, even if an employment contract has not been concluded. In this case, the parties are different entities - the employer company, represented by the sole participant, and the employee hired for the position of CEO.
Therefore, it is still recommended to conclude an employment contract with the CEO, under which the salary will be paid.
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The difference between a CEO and a director
The CEO is a managerial figure in a large organization that has many structural divisions. The heads of these divisions hold the positions of deputy CEOs. It is worth noting that this position can exist even in small enterprises with a small number of employees.
Russian legislation does not clearly distinguish between the concepts of “director”, “CEO” and “company president”. In federal laws and reference books of management positions, these terms are used interchangeably. The law requires that each organization have one executive body, the functions of which can be performed by either the business owner or an employee. It is important that the relevant position is specified in the company’s charter and its constituent documents. At the same time, the position may have different names.
General manager
Source: shutterstock.com
The CEO of a manufacturing company may have the same status as the director of another commercial organization. As a rule, the term “CEO” is used, since it simplifies the organization of document flow: there is no need to make changes to documents when the company expands.
The director's position is distinct from the CFO or CTO positions, which replace the top executive in specific areas. CFOs and CTOs are at a lower level in the organization's hierarchy, as their functions focus on managing specific areas or business units.
The commercial director is responsible for the organization's business operations, as well as for supply and sales. His mission is to promote the company on the market. The technical director, in turn, is responsible for the condition of all communications, control over equipment and premises, as well as for repair work. The financial director manages cash flows.
The executive director is usually the deputy general director. In some cases, he or she may be the main person of the company and perform the functions of the sole executive body. The scope of powers and duties of the executive director depends on the statutory documents of the enterprise.
The employer of the CEO is the company represented by one of its participants. As a rule, the employment contract is concluded for a certain period, which is specified in the charter and the decision on the appointment.
After the appointment of this specialist, appropriate changes are made to the unified state register of legal entities to notify the authorities and contractors about the selection of a new head of the company.
If the company has only one participant, he can appoint himself as CEO. However, it is unclear whether he should enter into an employment contract with himself.
Competent authorities, such as the Ministry chinese thailand data package of Labor and the Federal Service for Labor and Employment, claim that concluding an employment contract with oneself is unacceptable. The fact is that this action is contrary to the law, which prohibits one person from concluding an employment contract on behalf of both the employee and the employer.
However, from the point of view of the Ministry of Finance, labor relations arise in any case, even if an employment contract has not been concluded. In this case, the parties are different entities - the employer company, represented by the sole participant, and the employee hired for the position of CEO.
Therefore, it is still recommended to conclude an employment contract with the CEO, under which the salary will be paid.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153318
The difference between a CEO and a director
The CEO is a managerial figure in a large organization that has many structural divisions. The heads of these divisions hold the positions of deputy CEOs. It is worth noting that this position can exist even in small enterprises with a small number of employees.
Russian legislation does not clearly distinguish between the concepts of “director”, “CEO” and “company president”. In federal laws and reference books of management positions, these terms are used interchangeably. The law requires that each organization have one executive body, the functions of which can be performed by either the business owner or an employee. It is important that the relevant position is specified in the company’s charter and its constituent documents. At the same time, the position may have different names.
General manager
Source: shutterstock.com
The CEO of a manufacturing company may have the same status as the director of another commercial organization. As a rule, the term “CEO” is used, since it simplifies the organization of document flow: there is no need to make changes to documents when the company expands.
The director's position is distinct from the CFO or CTO positions, which replace the top executive in specific areas. CFOs and CTOs are at a lower level in the organization's hierarchy, as their functions focus on managing specific areas or business units.
The commercial director is responsible for the organization's business operations, as well as for supply and sales. His mission is to promote the company on the market. The technical director, in turn, is responsible for the condition of all communications, control over equipment and premises, as well as for repair work. The financial director manages cash flows.
The executive director is usually the deputy general director. In some cases, he or she may be the main person of the company and perform the functions of the sole executive body. The scope of powers and duties of the executive director depends on the statutory documents of the enterprise.