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The CEO in the Employment Relationship: How will the employment contract be regular?

The CEO in the Employment Relationship: How will the employment contract be regular?

Part-time Executive, employed by Two Ltd. Executive duties. (In a third limited company, he also performs executive duties in an employment relationship beyond 36 hours.) In an A limited company, the CEO owns 95 percent, and another individual owns 5 percent. At “B” Kft. , the managing director owns 50 percent, and “A” Kft. He also owns 50 percent. What is the association member’s document, what is the work contract required for the work relationship to be regular? Who takes care of the employer’s rights in this situation? Based on which (association member’s decision)? asked our reader. Dr. Maria Hajdu Dudas, Labor Attorney, replied.

The answer is provided by the Civil Code (Ptk.) and Labor Code (Mt.) together. The chief executive officer of the business association must be named in the founding document. After the business company is incorporated, the top officials are elected, appointed or removed by the members of the company. A senior official is appointed by acceptance of office by the person appointed, elected or appointed. By appointment or election, a corporate legal relationship is created between the senior official and the company, but this does not create an employment relationship. According to Jabal, the business relationship is established through the employment contract, so the limited liability company must conclude an employment contract with the senior official.

Our related article:
Sole Proprietorship Can a managing director be a business owner and an employee at the same time?

Civil law and according to which the legal representation of the commercial company is carried out by the senior official, and accordingly, the senior official must conclude an employment contract with himself as a representative of the company. At the same time, according to Article 20. (1) of the Mountain, the employer’s power exerciser has the right to make a statutory declaration on behalf of the employer. On the basis of paragraph (2), the order of exercise of the employer’s rights is determined by the employer – within the framework of legislation (eg in the constituent document, regulatory and operational regulations, etc.). In the case of commercial companies, in accordance with the regulations of the Companies Act (the right of the supreme body of the company to elect and summon the chief officer), the power of the employer is usually exercised by the supreme body in relation to the chief officer – based on the authorization from the documents already referred to. It should be noted that the Civil Code Ltd. In the event of a meeting of the members, it indicates the exclusive competence to agree to enter into the contract concluded with the CEO of the company. Although this provision does not focus on the employment contract, it affects and enhances the authority of the supreme body.

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That is, yes, a resolution of the members’ meeting is required, according to which the CEO will be appointed (the employment contract can even be included in the resolution). It is desirable that the site be the other owner on behalf of the business owner, on behalf of the meeting of members.

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