Legal analysis
An executive director refers to a director who participates in the operation. In the legal sense, it refers to a small limited company, which has no board of directors and is responsible for the company's operation and management; There is no clear legal basis for listed companies. Executive directors and non-executive directors are relative, and the functions of executive directors should be the same as those of the general company's board of directors, and they should be responsible for the shareholders' meeting. At least one member of the board of directors is an executive director, and the executive director has the responsibility to actively perform the functions of the board of directors or the designated functions and responsibilities. If the company suffers economic losses due to the failure to fully and reasonably exercise the functions of the board of directors, and the shareholders require the board of directors to bear the liability for compensation, if the division of responsibilities of a director is not clear at the time of occurrence, all executive directors shall bear joint and several economic liabilities. A limited liability company with a small number of shareholders may have an executive director instead of a board of directors. The executive director may concurrently serve as the company manager. The authority of the executive director is stipulated in the articles of association with reference to the provisions of the Company Law on the board of directors. Where a limited liability company does not have a board of directors, the executive director may also act as the legal representative of the company.
legal ground
Article 44 of People's Republic of China (PRC) Company Law A limited liability company shall have a board of directors with three to thirteen members. However, unless otherwise provided for in Article 50 of this Law. A limited liability company established by two or more state-owned enterprises or two or more other state-owned investors shall have staff representatives among its board members; Other members of the board of directors of a limited liability company may include representatives of employees of the company. The employee representatives in the board of directors are elected by the employees of the company through employee congresses, employee congresses or other forms of democratic elections. The board of directors shall have a chairman and may have a vice-chairman. The method for the formation of the chairman and vice chairman shall be stipulated in the articles of association.