Therefore, some presidents also serve as chairmen as a courtesy. When two positions are held by different people, it is generally that the president tends to make decisions and the chairman is responsible for specific work, or that the president is an honorary title and all power is exercised by the chairman.
The president is relative to the group/business unit. Generally speaking, there will be many subsidiaries under a large group company, and each subsidiary also has its own general manager. But the problem is that some groups are really too big, and there are hundreds of subsidiaries below. Can't hundreds of general managers report to the CEO?
Therefore, many group companies set up business divisions, that is to say, several or dozens of business-related companies set up a business division, and the boss of the business division is also the president of the business division. Some group companies have a dozen subsidiaries, and then the boss of the head office is the president. More specifically, the president is not in charge of one company, but of many companies.
Relevant laws:
According to the Company Law of People's Republic of China (PRC), when shareholders (joint stock limited companies) or investors (limited liability companies) convene a general meeting of shareholders to set up a company, they need to nominate several directors to form a board of directors in accordance with the provisions of the company's articles of association, and the board of directors will run the company on behalf of the shareholders or investors. If there is no board of directors, an executive director may be recommended.
If the board of directors is established after the election of directors, all directors shall elect a chairman. The board of directors deliberated and voted, and the board of directors was convened by the chairman. Some companies will stipulate in their articles of association that the special director or several directors or the chairman will have one vote to veto the resolutions of the board of directors, otherwise the chairman and all directors will have no additional power except to convene the board of directors.
The general manager is appointed and removed by the board of directors, but the general manager is generally responsible for the daily operation of the company and reports to the board of directors, so the general manager is the person sent by the board of directors to manage the company.