Job description of the General Director: duties, rights and responsibilities

Who is he, the CEO?

General Director is the head of the production and economic sphere of an organization or enterprise. An important aspect to note is that despite its broad powers, it is not the actual owner of the company, but an employee. The owner of this type of corporation is the board of founders, the meeting of shareholders. The position is characterized by a large and widespread degree of responsibility:

For the effective use and general safety of the company's property.
For all the decisions he made and their consequences.
For the results of the organization, enterprise in the financial and economic aspect.

The main function of the general director is the overall management of the production and economic activities of the company. The position is typical for any large company or joint stock company. Both in Russia and throughout the world, it is one of the most paid, promising and motivating.

Responsibility of the JSC director

The Labor Code of the Russian Federation (hereinafter referred to as the Labor Code) provides for a special norm - Art. 277, on the basis of which the general director bears full financial responsibility for direct actual damage caused to the company.

Also, in a number of cases, the head of the organization compensates the organization for losses caused by his guilty actions. One of these cases (see the resolution of the Plenum of the Supreme Court of the Russian Federation “On some issues...” dated 06/02/2015 No. 21) is given in Art. 71 of Law No. 208.

According to this norm, the sole executive body of the company must act in the interests of the company, exercise its rights and fulfill its obligations in relation to the company in good faith and reasonably. In this case, the head of the joint-stock company is responsible for:

before the company for losses caused to it by his guilty actions (inaction);
before the company or shareholders for losses caused by his guilty actions (inaction) that violate the procedure for acquiring shares.

The company itself or the shareholder has the right to go to court with a claim for compensation for losses caused. Moreover, in the first case there is a limitation: a claim will be accepted only from a shareholder or shareholders who collectively own at least 1% of the outstanding ordinary shares.

When determining the grounds and extent of the manager’s liability, ordinary business conditions and other circumstances relevant to the case must be taken into account.

Note! In certain paragraphs 4 of Art. 71 of Law No. 208 in cases the director may be jointly and severally liable together with members of the board of directors and members of the collegial executive body.

We recommend reading useful judicial practice on holding the director of a joint stock company liable for losses in the ConsultantPlus system. To get acquainted with the practice, you will need access to the ConsultantPlus system (to connect to the system, order a price list) or temporary access for 2 days.

Requirements for a specialist

There are corresponding requirements for those holding a high position. Here are the points that a person performing the functions of general director must meet:

Availability of specialized higher education corresponding to the main activities of the enterprise, company - legal, economic, technical, etc.
Experience in a leadership position. Typically a minimum of 2 years.
Experience in the area in which the corporation's main activities relate.
Excellent knowledge of regulations and legislative acts that are related to the performance of the functions of the General Director.
Confident knowledge of modern technology products - PCs, instant messengers, email, professional programs, etc.

General provisions of the job description

Let's present the main provisions from the document regulating the activities of the general director:

The main path of the employee is the management of the economic, production and economic and financial activities of the company.
In his actions, the general director relies on the legislative acts of the Russian Federation, internal regulatory documentation, the charter of the organization or enterprise, as well as on the employment contract and job description.
The full responsibility of an official extends to the results of his decisions, the effective use and safety of the company's property, and the economic and financial results of its work.
Directly reports to the meeting of shareholders and the board of directors.
During the absence of the general director from his post, his functions are temporarily performed by an employee holding another management position, by order of the company's board.
In his activities, the official is guided by the following: all-Russian legislative acts, the corporation's charter, internal regulations, internal labor rules, decisions of the board of directors and the general meeting of shareholders, as well as other regulatory rules of the company.

Responsibilities of the manager for SOUT

A brief description of the work performed by the general director for SOUT can be expressed in the form of an algorithm:

At this stage, the manager forms a commission to conduct the study, approves the schedule of activities and the list of jobs that will be studied.

The manager selects a company that provides special assessment services. He must check whether it is suitable for this type of activity based on the requirements of Art. 19 of the law “On special assessment of working conditions”. Having chosen an expert organization, the director enters into a contract with it to carry out work and pays for the research.

The involved company conducts tests and issues a report to the commission. If the act is accepted without disagreement, the director approves the report.

If the assessment shows that the workplace is not exposed to harmful factors, the manager sends a declaration to Rostrud. This act confirms the compliance of working conditions with the regulatory requirements of the Russian Federation. The declaration is valid for 5 years from the date of signing the report on the results of the special assessment.

The manager familiarizes employees with the results of the special assessment no later than 30 days from the date the report was compiled. If a worker has questions about the results, the director gives clarifications. The report is published on the employer's website.

Approval of local acts.
Conclusion of an agreement with the organization.
Signing the report.
Filing a declaration.
Publication of the results of the procedure

Functions of the General Director

The content of this section largely depends on the specifics of the company’s activities. But the general, main functions of the general director are as follows:

Management of financial activities and economic work of the company in accordance with the adopted charter.
Such an organization of the activities of the entire structure that allows the efficient use of the labor of all its branches.
Guaranteeing compliance with the law in the functioning of an organization or enterprise.
Timely and complete implementation of instructions from the founders, board of directors, shareholders (depending on the form of organization of activities).

Tips and tricks for writing a CEO job description

Any job description has a universal form and is provided to the employee in a standard form. The document is registered in the accounting journal and signed by the persons indicated in it. The development of documents should begin with a study of the structure of the enterprise, its divisions and the presence of management objects. The manager acts as a subject of management and coordinator. Since any instruction consists of several sections, it is worth considering the features of compiling each section in more detail.

Each DI must contain mandatory clauses and sections. Without this, it will not be considered an official document.

Responsibilities of an official

We continue to examine the functions and responsibilities of the CEO. The latter include the following:

Management of the company's activities - financial and economic.
Organizing the work of the entire structure in such a way that each of its “cogs” brings a certain result for the system.
Responsibility for fulfilling the entire list of the organization’s obligations to creditors.
Ensuring the preparation of the required reporting forms, as well as the organization of accounting.
Issuing orders, taking measures to ensure that all property necessary for the company’s activities appears on the company’s balance sheet.
Ensuring the safety of the property of a corporation or company.
Issuing orders, taking measures to provide the enterprise and organization with qualified workers and employees.
Ensuring the interests of the company in legal proceedings.
Implementation of a set of measures to monitor employees’ compliance with job responsibilities, regulatory documents of the organization, and the necessary all-Russian legislative acts.
Work to monitor the implementation of decisions of the meeting of shareholders and the board of directors.
Providing reports, publications and other information on the company’s activities to audit commissions, the board of directors, and shareholders’ meetings.

Functions of the general director of LLC

Let's talk in more detail about the financial and economic head of a limited liability company. The decision to appoint him is the prerogative of the sole participant of the LLC or the general meeting of founders.

When changing officials, the participation of the previous general director is not required. The new official will be an applicant to the Federal Tax Service, where this kind of change is registered.

The functions of the general director here overlap with the general ones - for an enterprise, a joint stock company, a large corporation:

General management of the structure.
Representative of the company in its interaction with third parties.
With his visa he enters into force contracts, accounting reports, and other important documentation.
The right of first signature of the entire series of payment documents.
In some cases, it has the sole right to sign bank payment papers.
At his own discretion, he issues powers of attorney to officials who represent the interests of the LLC entrusted to him in various areas.
Certifies his signature at the bank where the company's current account is opened.

conclusions

From all of the above, the following conclusions can be drawn:

The obligations of the LLC organizers are not limited to the size of their share in the management company. If debts arise that cannot be repaid with company property, business owners will have to answer with personal funds. For this reason, it makes no sense to form an LLC just to avoid personal financial risks.
It is somewhat more difficult to attract the owner of an LLC to fulfill financial obligations than an individual entrepreneur. But currently the number of such cases is in the thousands.
If the company is run by a hired director, the owners should not completely remove themselves from running the business. It is necessary to introduce a control system that allows you to see the real picture. Otherwise, the director will have to bear personal responsibility for illiterate or dishonest actions.
It is important to monitor the status of financial statements. Distortion of documents or their damage may become evidence of intentional bankruptcy and, accordingly, the occurrence of subsidiary obligations.
Creditors have the right to demand repayment of debts not only from the enterprise, but also from its owner if the company is in the process of bankruptcy.
Creditors need to prove that the cause of the company's ruin was the wrong actions or inaction of management, but in most cases there is a presumption of guilt, and there is no need to prove anything to those demanding repayment of debts.
An attempt to divest a company's assets shortly before declaring bankruptcy is a reason to initiate criminal proceedings against the owners. Therefore, an attempt to hide part of the property may result in a criminal conviction.
If it is impossible to fulfill financial obligations, it is better to initiate bankruptcy proceedings by the owner himself, without waiting for the Tax Committee or other competent authorities to do this.

It is recommended to begin the bankruptcy procedure with the involvement of highly specialized lawyers who have positive experience in handling such cases. Only in this case can you count on the successful completion of the process.

Manager's rights

We looked at what functions the general director performs. It is also important to know the list of rights on which his work activity is based:

Draw up and sign documentation within the limits of your competence.
Make decisions within the authority of the CEO.
Represent the interests of the entire company when interacting with other organizations.
Terminate and conclude contractual documents on behalf of the entire company, corporation - business, labor, etc.
Open company current accounts in banking and credit institutions.
Endorse (sign, approve) the company’s staffing table, workday rules and other local (internal) documents of the structure.
Perform transactions with both cash and property of an organization or enterprise.
Hire and fire workers and employees.
Involve employees in various types of responsibility - disciplinary, administrative, etc.
Determine the accrual system, payment procedure, wages and other forms of material incentives for employees.
Prepare and submit a number of issues for general discussion by the board of directors and shareholders’ meeting.

Rights

The General Director is vested with the rights:

drawing up and signing documentation
making important decisions
termination and conclusion of contracts
opening bank accounts
signing the staffing table
dismissal and hiring of specialists
representing the interests of the organization
holding employees accountable when serious violations are identified
establishing the form, system and amount of wages for employees

Attention! If serious problems arise, the decision is made not by the director alone, but by the board of directors, for which a specialist brings the necessary issues for consideration.

Responsibility of an official

In addition to the rights, duties, and functions of the general director of an enterprise, there are also prescribed standards of responsibility. According to the law, they can be as follows:

Responsibility to the company both for one’s actions and inaction, which led to losses and additional expenses.
Responsibility for disclosure of data containing commercial or official secrets.
Responsibility for negligent, untimely, incomplete performance of duties and functions of the general director of the company, as well as for failure to fulfill them.

Responsibility

The CEO must take his work seriously, since he is responsible for major violations. It consists not only of large fines, but also of dismissal or criminal prosecution. The General Director is responsible for violations:

the occurrence of losses as a result of making incorrect decisions or inaction of a specialist
disclosure of confidential information that is a trade secret
negligent performance of labor duties
breach of obligations

Attention! Before bringing the general director to justice, an internal investigation is carried out.

Wage level

One of the most elusive characteristics is that you cannot predict the level of your income if you take the CEO’s chair. It is only known that in Russia the minimum wage for such a person is 60 thousand rubles per month. On average, the official income of the general director is about 250 thousand rubles per month. The very top numbers can be quite exorbitant for a mere mortal.

However, not everyone who is intimately familiar with the level of responsibility of this person will strive to occupy such a position. The high level of remuneration of the general director is justified by his enormous responsibility for the results of his own decisions. This post is occupied by professionals armed with many years of experience in management and work in the company's specialization, talented and risk-taking managers, educated, responsible people.

Related positions

The general director of a large enterprise is a very responsible position associated with the performance of a variety of functions. This is why managers often need an assistant with slightly less authority or in their entire team.

Typically the following positions are entered:

Deputy, chief assistant. The main functions of the Deputy General Director are comprehensive work with staff, fulfilling the latter’s duties in case of unforeseen situations.
Financial Director. Responsible for economic activities and cash flows.
Commercial Director. His element is promotion, marketing, sales department, and logistics.
Executive Director. Another responsible position. His prerogative is financial and administrative control, interaction with subcontractors, suppliers, and organization of the document flow process.

Thus, CEO is one of the most promising, high-paying hired positions. Its essential feature is a high degree of responsibility both for one’s decisions and for the overall results of the company’s activities.