What are CEO and board of directors?

CEO is what we often call CEO. He is the maker of the company's major policies and the decision-maker of the company's major affairs and personnel appointment and dismissal. His work includes creating a good cultural atmosphere and working environment for the enterprise and urging employees to work harder for the company. He is also responsible for maintaining and enhancing the corporate image, pushing the enterprise to the market better and taking the lead in opening up new markets.

The CEO is appointed by the board of directors of the company and is responsible to the board of directors. He is the chief executive of the company and the person with the most executive power, management power and decision-making power in the enterprise. An excellent CEO is the leader of the company, the core of all thoughts, the backbone and pillar of the company and makes great contributions to the company.

The board of directors is not an administrative body, but a legislative committee. It is an institution that safeguards the rights and interests of major shareholders. It usually sets up some committees to safeguard their interests and supervise the daily behavior of the CEO. It has the right to appoint and dismiss the CEO, and the powers of both parties are mutually restricted to prevent either party from exercising dictatorship. This relationship is somewhat similar to the relationship between western presidents and parliaments.

However, the authority of CEO and board of directors will be different in specific companies.

case analysis

A company once caused investors to change CEO because of internal disputes. Due to the CEO's own reasons, the board of directors decided to remove Mr. Zhao from the CEO position and terminate the labor relationship with him.

Mr. Zhao is the former CEO of a group company. He worked in a group for six years. In the past six years, he worked tirelessly and kept fighting, and made great contributions to the company. Together with several other senior executives, he made the first profit for this loss-making company 13 years.

He really made a great contribution to this company. Because he is the CEO of the company, he usually makes decisions on major issues of the company, and he is also responsible for the appointment and dismissal of personnel. He created a good corporate culture for the enterprise, urged employees to better serve the company, and made the group company mature step by step. Saved the company's crisis and won huge benefits for the company.

However, even high-level people who can have such relationships have special departments to manage them and prevent them from acting arbitrarily.

Some time ago, the board of directors of the group company sent an email to all employees, decided to remove Mr. Zhao as CEO, and immediately appointed a new CEO, with Mr. Zhang as executive director and recruiting CEO on behalf of Zhilian.

The reason why Mr. Zhao was dismissed from the post of CEO was that Mr. Zhao used improper means to form a gang within the company, colluded with several other senior executives of the company, abused power for personal gain and harmed the interests of the company. And spread rumors within the company, slander the reputation of other executives, undermine the unity of all employees within the company, and hinder the company's listing plan and smooth operation. He also said that when he tried to embezzle the company's property, he deliberately hindered the company from adjusting its legal structure and provided the greatest convenience for individuals and gangs to seek personal gain.

Based on the above reasons, the board of directors said that he and several other senior executives were dismissed and the labor relationship was terminated.

Mr. Zhao himself said that all this was unwarranted and he himself had never done anything harmful to the company. He said that the management team and investors did have some differences in management ideas, but he didn't expect the company to make such a move, which really surprised him.

In order to avoid conflict, he would not appear in the company himself, and then he sent an email to all employees of the company, commenting on several major crimes mentioned in the board of directors, saying that he still cared about the company and all employees. He thought the board of directors had made such a decision and said that he was innocent.

So, under the resolution of the board of directors, Mr. Zhao left his job like this. The company has appointed a new candidate and will continue to develop according to the established track.

From the case, we can see that the board of directors has the right to appoint and dismiss the CEO. Although CEO is an executive, manager and decision-maker within an enterprise and the chief executive officer of the company, there are still corresponding institutions to supervise and manage him.

He is the manager of the enterprise, but there are also institutions or departments that specialize in managing him. In this way, their efforts will contain each other, and no one will have the final say, laying a solid foundation for the steady development of the company.

Mr. Zhao used to be the CEO of a group company. In six years' work, he has made painstaking efforts and sweat for the development of the enterprise. However, due to some circumstances, the board of directors dismissed him and appointed a new CEO. It can be seen that the CEO is appointed by the board of directors and is responsible to the board of directors.

The board of directors of a company is the most important business decision-making and management institution of the company, and the board itself is irrevocable or ceaseless. All the affairs and business of the company are carried out and decided by the CEO appointed by the board of directors under the leadership of the board of directors.

This is the responsibility and authority of the CEO and the board of directors. Let's not talk about the right and wrong of the CEO and the board of directors in the case. We can judge from the sentence that Mr. Zhao was removed from his post and labor relations were terminated in the email sent by the board of directors to all employees. After all, the CEO is also an employee of the enterprise, just a senior employee.

The appearance of CEO is to meet the needs of company development. With the rapid development of enterprises today, it takes a long time to vote and communicate at different levels, which seriously affects work efficiency. Therefore, a person with high-end judgment and decision-making power is needed, so CEO came into being. The main obligations of the board of directors are to formulate the articles of association and minutes of meetings, report the gains and losses of the company's capital in a timely manner, and apply for bankruptcy to the relevant authorities when the capital cannot repay the foreign debt.

Expert guidance

The appearance of CEO and the existence of the board of directors all serve the company, not only for its better development, but also for its interests.

The CEO is a person. After the establishment of the joint-stock company, the board of directors is a stable institution. Members of the board of directors may be appointed and removed at any time according to the articles of association. In some companies, the CEO can also be a member of the board of directors.

The CEO has the highest executive, management and decision-making power, which is given by the board of directors. Therefore, once the CEO is unqualified, the company's board of directors will dismiss him.

Neither the CEO nor the board of directors can abuse their rights, otherwise it would be tantamount to killing each other and eventually losing both sides. In the final analysis, it is the company itself that suffers, and it is really not worth the loss.

The existence of CEO and board of directors is relative. If one does not exist, the existence of the other will lose its meaning and value. The two should perform their respective duties and contain each other, so as to maintain a balance and provide internal guarantee for the company's development.