Change of CEO in LLC: briefly about the main

About how the change of the general director of the enterprise occurs, not everyone knows.

With the development of market relations in Russia and the collapse of the USSR, the Civil Code was drafted that regulates civil-law relations in the Russian Federation. In addition to it, a large number of laws and by-laws were created and put into effect.

Among Russian entrepreneurs the most popular are commercial organizations formed in the form of a limited liability company (LLC).

The prevalence of them is primarily due to the convenient type of responsibility of the founders, which is limited by the amount of contributions to the charter capital of the company.

The general meeting of the founders is engaged in the management of society. The founders shall meet in accordance with the rules approved by the Charter of the LLC. This is the document that is the main one and regulates the competence of the meeting and the executive sole body of the enterprise.

More often, the functions of the executive body in LLC are carried out by the General Director, who ensures the work of the whole structure of the enterprise. Based on the results of the company's economic activities, it is he who is fully responsible.

The executive body of the LLC is appointed by the general meeting of the founders, who approve the proposed candidature and determine its competence, as well as the amount of its remuneration and the types of activity of the enterprise.

The change of the CEO of the LLC may be the result of various conditions. The Charter may specify the period for which the director's powers apply. The possibility of re-election of the previous leader can be directly specified in the Charter or absent - this is not a mandatory section of the constituent document.

Change of the CEO can occur for various reasons: a personal statement of dismissal on the initiative of the administrator, due to a long illness and so on.

Significantly worse, if the CEO changes to an LLC after the expiration of the employment contract, although it happens that the provisions of the Charter provide for mandatory change of the governing body every three calendar years from the date of appointment.

The change of the CEO on the initiative of the founders of the company says that they are not satisfied with the state of affairs in the company, which is completely dependent on the executive body.

Unsatisfactory position in the enterprise can be prevented if the founders are notified in time. The General Director is obliged to respond in a timely manner to the change in market relations: monitor the market situation, interact with suppliers and customers, and have debts with the enterprise. If it is impossible to find a solution to the issues, the executive body must inform the general meeting of the founders.

In some cases, the change of the CEO may significantly change the position of the company. It all depends on how critical the situation is at the enterprise. In the case of large accounts payable, if it is impossible to repay debts, the executive body alone is obliged by law to raise the issue of bankruptcy of the enterprise.