Legal regulation of the activities of the General Director is carried out by civil and labor legislation. But these legal acts do not contain an unambiguous definition of the status of the head, which provokes the emergence of legal conflicts. To limit the CEO in his powers, it is necessary to develop one local normative act regulating his activities, or take this into account in several legal acts of the company. Try one of the following methods.
Instructions
Step 1
Create a collegial executive governing body. In this case, the efficiency of decision-making will suffer, and the legislation does not allow the use of the powers of the collegial governing body to significantly limit the actions of the head. The board does not have the right to control over the sole executive body. A director who will serve as chairman of the board may be subject to abuse.
Step 2
Develop a Regulation on the General Director, an employment contract, a job description for the head. Define in these local regulations, as well as in the Articles of Association of your company, the authority of the CEO. They can be defined in the form of a prohibition on the commission of certain actions. In this case, the effectiveness of such a measure will depend on the level of qualifications of the lawyer who will undertake the compilation of such a list of restrictions.
Step 3
Clearly write down in the Charter and job responsibilities the directions and goals that the director should be guided by. Do not use vague language such as "activities aimed at increasing or making a profit." This formulation unties the hands of the leader and gives him the opportunity for expansive interpretation and abuse. Tie the result of his activity to the performance of specific business actions and obtaining a specific result.
Step 4
The corporate law contains the possibilities of organizing management, which can also be used to limit the powers of the head of the enterprise. Redistribute them among several governing bodies and set limits on the amount of transactions concluded. Develop a procedure for the approval and approval of major transactions, a special procedure for related-party transactions, introduce restrictions on the subject composition and objectives of the transaction.
