Employment agreement with CEO, frequent mistakes
Feb, 06 2018
Chief Executive Officer has enormous number of rights and obligations. However, the issue of CEO Employment Agreement itself is often neglected.
We would like to draw your attention to the most frequent mistakes which occur in employment agreements with CEO:
- The Agreement lacks reference to the decision (minutes) which appointed CEO to position;
- The name of the position differs from the one in the Charter or State Register for Legal Entities.
- The agreement is signed by an unauthorized person. In accordance with the law, the Agreement with CEO shall be signed by Chairman of Participants General Meeting or any other person, authorized by it.
In addition, it should be taken into consideration that such an Agreement has some other peculiarities. For instance, probation period may last up to 6 months, and should the salary exceed 25% of company’s assets, the Agreement may require corporate approval.
Separately worth noting that Employment agreement with CEO who is the only founder has its own specificities. We have more on it in this article: http://valen.moscow/employment-agreement-sole-participant-fact-or-fiction-details-our-website/