Article 51 of the Company Law: A limited liability company with a small number of shareholders and a small scale may have an executive director instead of a board of directors. The executive director may concurrently serve as the company manager. The functions and powers of the executive director refer to the provisions of Article 46 of the Company Law. Where a limited liability company does not have a board of directors, the executive director shall be the legal representative of the company.
Functions of the executive director: At least one member of the board of directors serves as an executive director, who is responsible for actively performing the functions of the board of directors or designated functions. 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 shall be the legal representative of the company.
Relationship with the general manager: the board of directors manages the general manager team. When the scale of the enterprise is relatively small, during the recess of the board of directors, the executive director exercises some rights on behalf of the board of directors. The right to represent the board of directors is a management relationship with the manager. The executive director is an ex officio member of the company.
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 executive director in a limited liability company represents a management organization, although he is composed of only one person; The executive director of a joint stock limited company is a position, mainly to distinguish it from independent directors and non-executive directors. 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 shall be the legal representative of the company. Basically, in a limited liability company, the executive director is the chairman.