Change and Dismissal of the CEO and Chief Accountant

Legal support for the change and dismissal of the CEO and chief accountant

In any company, regardless of the type of activity, the key specialists are the CEO and the chief accountant due to the additional rights and responsibilities established by law. The head of the organization and the chief accountant, in comparison with other employees, have not only broader rights and responsibilities, but also the specifics of formalizing labor relations, including when terminating labor relations with such employees.

In addition to the grounds provided for by labor legislation for termination of an employment contract, an employment contract with the head of the organization in accordance with Article 278 of the Labor Code of the Russian Federation is terminated on the following grounds:

1. in connection with the removal from office of the head of the organization – the debtor in accordance with the legislation on insolvency (bankruptcy);
2. in connection with the adoption by the authorized body of a legal entity, or the owner of the organization's property, or the person (body) authorized by the owner of a decision to terminate the employment contract, while the decision to terminate the employment contract on the specified basis with respect to the head of a unitary enterprise is taken by the authorized body of the owner of the unitary enterprise in the manner established by the Government of Russia. In this case, in the absence of culpable actions (inaction) of the head, he is paid compensation in the amount determined by the employment contract, but not less than three times the average monthly salary, with the exception of cases provided for by law.

Also, in addition to the already indicated grounds for termination of an employment contract with the head of the organization, the following may also be grounds for termination of an employment contract with the head of the organization:

1. failure to comply with the established maximum level of the ratio of the average monthly salary of the deputy head and (or) chief accountant of the state extra-budgetary fund of the Russian Federation, territorial fund for compulsory medical insurance, state or municipal institution or state or municipal unitary enterprise and the average monthly salary of employees of this fund, institution or enterprise;
2. other grounds stipulated by the employment contract.

It is also important to note that when the owner of the property of the organization changes, the new owner has the right to terminate the employment contract with the head of the organization, his deputies and the chief accountant no later than 3 months from the date of acquisition of his right of ownership. In this case, the new owner is obliged to pay the head of the organization, his deputies and the chief accountant compensation in the amount of not less than three times the average monthly salary of the employee, with the exception of cases provided for by law.

In addition, the employment contract is terminated with the heads of organizations and chief accountants who, in accordance with a medical report, need a temporary or permanent transfer to another job, in case of refusal to transfer or the absence of appropriate work at the employer. The employer has the right, with the written consent of the said employees, not to terminate the employment contract with them, but to suspend them from work for a period determined by agreement of the parties. During the period of suspension from work, wages are not accrued to the said employees, except for cases provided for by law, a collective agreement, agreements, or an employment contract.

Legal support of changing and dismissing a CEO

Changing a CEO is an important issue for any organization, from the rules established by labor legislation to tax law and other regulatory documents governing the activities of various types of organizations.

To properly change or dismiss a CEO, it is necessary to carry out a number of important procedures, such as:

1. receive a resignation letter or issue an order to change the CEO, it is important to note that the resignation letter is drawn up in the name of the authorized body, whose competence includes deciding on the termination of the employment contract with the CEO, and one month before the termination of the employment contract;
2. make a decision to dismiss the CEO (terminate his powers, change the CEO), depending on the organizational and legal form of the company, the decision-making procedure may be different;
3. transfer cases and documents to an authorized person;
4. issue an order to terminate the employment contract at the initiative of the employee on the last day of the month after the resignation letter is filed;
5. make a full payment and issue a work record book (if it was kept in paper form);
6. notify the tax office of the changes made about the manager, write an application for a change of manager in form No. P14001, change information about him in the Unified State Register of Legal Entities.

Consistent execution of legally significant actions when changing or dismissing the head of the company allows the organization to continue functioning in full without possible adverse consequences.

Legal assistance in changing and dismissing the chief accountant

Changing or dismissing the chief accountant, the main financial specialist of the organization, who has access to all accounting and commercial information, requires that the HR department carefully and meticulously study the issue.

Despite the extensive availability of grounds for termination of the employment contract, the change or dismissal of the chief accountant plays a significant role for the company. Considering that all financial matters were under the control of such an employee, it is important that when terminating the employment contract with the chief accountant, the management of the organization appoints a specialist by an administrative document to whom all matters performed by the chief accountant will be transferred, no matter whether it will be a new chief accountant or just an acting employee.

The head of the organization and the chief accountant are important positions in each organization, regardless of the organizational and legal form, their change or dismissal entail a large number of legally significant actions, failure to perform which can lead not only to penalties, but also to the invalidity of the actions performed by the organization.

A properly organized procedure for changing the head and chief accountant will avoid many unnecessary questions not only from counterparties, but also from regulatory authorities of various types.

Legal services

1. Consulting on issues of changing and dismissing the CEO and chief accountant
2. Preparation of documents required for changing and dismissing the CEO and chief accountant
3. Legal assistance in transferring cases from the old manager or chief accountant to specialists newly hired for these positions
4. Interaction with tax authorities, preparation of documents required for the tax inspectorate when changing the company's management