Responsibility of the General Director, provided by law

The General Director is the main person in charge of the enterprise who is responsible for all decisions taken on the functioning and development of society. Without it, the enterprise can not exist.

The responsibility of the General Director is provided by law. It occurs in case of improper performance of duties. Applicable measures are relevant, first of all, for those enterprises that practice approval for senior positions of high-level specialists. However, these measures are applied to all other managers who hold the position of director general. Thus, the interests of the founders of companies are protected.

According to the law, the General Director is obliged to speak and make decisions solely in the interests of the company, that is, to fulfill his duties qualitatively and to bring profit to society.

The legal responsibility of the General Director comes in the following cases:

• If proven malicious intent when approving obviously unprofitable for the enterprise regulations.
• In the case of negligent performance of direct duties, which entailed losses for society.
• With any action or inaction that brought losses to the organization.

It is worth mentioning also cases in which the responsibility of the CEO is removed from him. These are the following situations: if he conscientiously performed his duties and did everything in his power, and also if he opposed the decision that caused the damage to the enterprise.

Considering the legal status of the General Director, it is worth noting that it is regulated by several branches of law. First of all, the CEO realizes civil rights and obligations on behalf of the legal entity, that is, it is the sole executive body, and its legal status is determined by civil legislation. On the other hand, the CEO is an employee who enters into an employment contract with the organization he or she heads . That is, he also has the rights guaranteed by labor legislation.

In practice, the ambiguous position of the CEO raises a lot of questions and unresolved problems. In order to regulate the rights and regulate the conditions of his work, the employer must develop the Regulations on the Director General. It should consist of general provisions, the appointment of a leader, the transfer of his powers and a description of his responsibilities.

In general terms, it should specify the status of the general director, to whom he obeys and how to manage the enterprise. In the next paragraph, it is necessary to describe in detail the procedure for appointing and the conditions for election to this position. It is also possible in this section to regulate the rules for concluding an employment contract with him and to specify the conditions for termination of powers.

The section on the powers of the director general should contain information on duties and rights that are in accordance with the provisions of the employment contract with the employee. You can describe the actions that he has the right or not have the right to perform, and also indicate what decisions he has the right to make independently, and which only to approve or accept with the consent of the founders.

The next paragraph prescribes the responsibility of the Director General for unlawful actions. It is usually indicated that the measure of punishment is determined in accordance with the Labor Code of the Russian Federation.

According to the current legislation, the responsibility of the director of the LLC is divided into several types. The first of them is a material one, that is, the head, in case of proof of his guilt, must pay damages in accordance with the norms of the law. Also, the responsibility of the CEO of LLC is administrative, it is envisaged not only for the manager, but also for the enterprise. In addition, he can be brought to criminal liability. For example, for non-payment of taxes or concealment of funds.