Standards and salaries of directors and general directors of limited liability companies with two or more members

Regulations on directors and general directors of limited liability companies with two or more members. How are the standards and salaries of directors and general directors of any type of company regulated?

1. Director, General Director of a Two-Member Limited Liability Company?

Pursuant to Clause 1, Article 63 of the Law on Enterprises 2020, stipulates the concept of Director and General Director as follows:

“The Director or General Director is the person who manages the company’s daily business activities and is responsible to the Board of Members for exercising the rights and obligations of the Company. me.”

2. Rights and obligations of the Director and General Director of a two-member limited liability company

According to Clause 2, Article 63 of the Law on Enterprises 2020, the rights and obligations of the Director and General Director are stipulated as follows:

– Organize the implementation of resolutions and decisions of the Board of Members;

– Decide on issues related to business activities daily of the company;

– Organize the implementation of the company’s business plans and investment plans;

– Promulgate internal management regulations of the company, unless otherwise stipulated in the company’s charter;

– Appoint, dismiss, dismiss managers in the company, except for positions under the authority of the Board of Directors member;

– Sign contracts on behalf of the company, except in cases under the authority of the Chairman of the Board of Members;

– Propose a plan for the company’s organizational structure;

– Submit annual financial reports to the Board of Members;

– Propose plans for using and distributing profits or handling business losses business;

– Labor recruitment;

– Other rights and obligations are stipulated in the company charter, resolutions and decisions of the Board of members, and labor contracts.

In addition, clause 1 and clause 2 of Article 71 of the Law on Enterprises 2020 regulate the responsibilities of the Director and General Director of a two-member LLC as follows:

– The Chairman of the Board of Members, Director or General Director and other managers, legal representatives, and Controllers of the company have the following responsibilities:

+ Exercise rights and obligations honestly, carefully, and in the best way to ensure the company’s maximum legitimate interests;

+ Loyal to the company’s interests; Do not abuse your position or position and use information, know-how, business opportunities, or other company assets for personal gain or to serve the interests of other organizations or individuals;

+ Inform the company promptly, fully, and accurately about the enterprise in which you own or have shares or capital contribution and the enterprise in which your related person owns, jointly owns or separately owns shares or controlling capital contribution;

+ Other responsibilities according to the provisions of law and the company’s Charter.

– The Director or General Director is not allowed to increase salary or pay bonuses when the company is unable to pay all due debts.

3. Standards and conditions for being a Director and General Director of a two-member limited liability company?

According to Article 64 of the Law on Enterprises 2020, the standards and conditions for being a Director and General Director of a two-member limited liability company are as follows:

“Article 64. Standards and conditions for being a Director and General Director

1. Not subject to provisions in Clause 2, Article 17 of this Law.

2. Have professional qualifications and experience in business administration of the company and other conditions prescribed by the company’s Charter.

3. For state-owned enterprises as prescribed in Point b, Clause 1, Article 88 of this Law and subsidiaries of state-owned enterprises as prescribed in Clause 1, Article 88 of this Law, the Director or General Director must meet the standards and conditions specified in Clauses 1 and 2 of this Article and must not be a person related to the family of the company manager, Controller of the company and the parent company; representative of the enterprise’s capital, representative of the state capital at the company and parent company.”

Thus, to become Director of a two-member LLC, one must meet the above standards and conditions.

4. What is the salary of the Director and General Director of a two-member LLC?

In Article 66 of the Law on Enterprises 2020, this issue is stipulated as follows:

“Article 66. Salaries, remunerations, bonuses and other benefits of the Chairman of the Board of Members, Director, General Director and other managers

1. The company pays salaries, remunerations, bonuses and other benefits to the Chairman of the Board of Members, Director or General Director and other managers according to economic results and efficiency Business.

2. Salaries, remunerations, bonuses and other benefits of the Chairman of the Board of Members, Director or General Director and other managers are included in business expenses according to the provisions of the law on corporate income tax and relevant laws and must be shown as a separate section in the company’s annual financial report.”

Based on the above regulations, there is no specific salary for the position. Director, General Director of a two-member limited liability company where the company will pay salary, remuneration, bonus and other benefits to the Director according to business results and efficiency.