Offices

← All media

“The term of office of the head of the company” — Irina Salnaya for the Legal Information Agency

Q&A: According to the charter of the LLC, the CEO is elected by the general meeting for 3 years, but meetings have not been held for five years. Are the powers of the head retained?

Irina Salnaya, lawyer, leading lawyer of the Law Firm "Prime Advice":

The current federal law does not provide for any civil consequences of the expiration of the term of office of the sole executive body. Therefore, in such a situation, the head is obliged to perform his functions until a new one is elected.

This approach is confirmed by judicial practice. Its purpose is to ensure the stability of companies' activities and turnover, as well as to protect public interests.

In addition, the Civil Code of the Russian Federation enshrines the principles of publicity and reliability of the data of the Unified State Register of Legal Entities. That is, third parties (clients, partners and others) have the right to rely on information about the director entered in the official register.

Read more