Director

Director* (of a company) is the head of a company. He/she manages the entrusted enterprise within his/her competence and pursuant to the charter of this company. The director is the administrator of loans of the entrusted enterprise, exercises the right of first signature of financial documents and the right of hiring and dismissal of industrial and office workers and employees. The director acts in the name of this legal entity as its body in civil law relationships. The minimum and maximum number of employees is usually specified in the company’s charter. If there are many directors in foreign companies, a part of them is singled out in so-called ‘first directors’. Directors are usually elected at a general meeting of shareholders and do not receive remuneration for their work unless otherwise provided for by the company’s charter and/or memorandum. They determine the amount of dividends and inform the general meeting of it in the report. If a shareholder goes to the law with regard to the dividends accrued incorrectly, the court in any case should not interfere with the directors’ resolution on what part of the company’s profit should be allocated to dividends. The director bears no personal responsibility for debts or insolvency of a company apart from the cases of criminal negligence and fraud participation on his/her part (see also Managing Director). In English companies there are officials who are called assistant directors. Usually they perform the same work but they do not have all titular responsibilities and privileges. The functions and degree of responsibility of assistants is determined by the directors to which they assist and not by the company’s internal regulations or legal acts.