What Is The Difference Between A Director And A CEO

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What Is The Difference Between A Director And A CEO
What Is The Difference Between A Director And A CEO

Video: What Is The Difference Between A Director And A CEO

Video: What Is The Difference Between A Director And A CEO
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The name of the head of an enterprise or organization - president, director or general director - is stipulated in the Charter of this enterprise. But according to what principle the name for the manager is chosen and how his labor relations with the enterprise are built, you need to figure it out by referring to the legislation.

What is the Difference Between a Director and a CEO
What is the Difference Between a Director and a CEO

How to "call" the head of an enterprise

There is a contractual relationship between the head of the enterprise and the enterprise. They are governed by federal laws, including: the Labor Code of the Russian Federation, federal laws "On Joint Stock Companies", "On Limited Liability Companies", as well as other regulatory and legal documents and acts approved by a constituent entity of the Federation or a territorial body of local government.

In the constituent documents of the organization and, in particular, its charter, it should be spelled out how its head will be called - an individual who exercises leadership and performs the functions of the sole executive body, as defined by Article 273 of the Labor Code of the Russian Federation. According to him, the founders can choose any name: director, general director, chairman or president - there is no difference, it does not change the essence in any way, the rights and responsibilities of the head do not depend on this either.

The head of the organization is an individual who was elected to the position by the general meeting or who took it on a competitive basis.

Therefore, you can choose any name, but you should still take into account the specifics of the work, field of activity and production volumes of this particular organization. If it is small, its leader can be called a director without any damage to his authority. But in the case when this is a rather large enterprise, which has, for example, several branches and subsidiaries, their heads may be called directors, and the general will be the one who carries out general management. The general director can also be called a manager in the case when the company provides for positions, for example, technical, financial or executive directors.

The signature on behalf of the employer in the employment contract is put by the person specified in the Articles of Association. This can be the chairman of the general meeting of founders or the chairman of the board of directors.

Features of registration of labor relations with the head of the enterprise

No matter how the head of the organization is called, in accordance with Article 20 of the Labor Code of the Russian Federation, this organization itself must be indicated in the employment contract with him as an employer. The basis for hiring and concluding an employment contract will be the decision of the meeting of founders or their authorized body - the Board of Directors. All these nuances should be reflected in the Charter.

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