Article 70 Director or General Director
1. The Members’ Council or the chairman of the company appoints or employs a director or general director for a term not exceeding five years to manage the day-to-day business operation of the company. The director or general director is responsible before the law and to the Members’ Council or to the chairman of the company for the implementation of
his or her rights and duties.
2. The director or general director shall have the following rights:
(a) To organize the implementation of resolutions of the Members’ Council or of the chairman of the company;
(b) To make decisions on all matters relating to the day-to-day business operation of the company;
(c) To organize the implementation of the business plan and investment plan of the company;
(d) To issue the regulations on internal management of the company;
(dd) To appoint, remove or dismiss managerial positions in the company, except for the positions falling within the authority of the Members’ Council or of the chairman of the company;
(e) To sign contracts in the name of the company, except for cases falling within the authority of the chairman of the Members’ Council or of the chairman of the company;
(g) To make recommendations with respect to the organizational structure of the company;
(h) To submit the final annual financial statements to the Members’ Council or the chairman of the company;
(i) To recommend the plan for use of profits or for dealing with losses in business;
(k) To recruit employees;
(l) Other rights stipulated in the charter of the company and in the labour contract which the director or general director enters into with the chairman of the company or the chairman of the Members’ Council.
3. A director or general director must meet the following criteria and conditions:
(a) To have full capacity for civil acts and not to be prohibited from management of enterprises as stipulated in this Law;
(b) Not to be a related person of a member of the Members’ Council or of the chairman of the company, of the person authorized to directly appoint the authorized representative or of the chairman of the company;
(c) To have relevant professional qualifications and experience in business management or in the main lines of business of the company or other criteria or conditions as stipulated in the charter of the company.
Article 71 Inspectors
1. The company owner appoints one to three inspectors for a term not exceeding three years. Inspectors shall be responsible before the law and to the company owner for the implementation of its rights and duties.
2. Inspectors shall have the following duties:
(a) To check the lawfulness, honesty and care of the Members’ Council, the chairman of the company and the director or general director in organizing the implementation of ownership rights and in managing the business of the
company;
(b) To evaluate financial statements, reports on business situations, reports on assessment of management and other reports before submitting to the company owner or relevant State bodies; to submit evaluation reports to the company owner;
(c) To make recommendations to the company owner on solutions for amendments of, additions to, the organizational and management structure and administration of the business of the company;
(d) Other duties as stipulated in the charter of the company or as requested or decided by the company owner.
3. An inspector shall have the right to sight any document or paper of the company at the head office or a branch or representative office of the company. Members of the Members’ Council, the chairman of the company, the director or general director and other managers shall be obliged to provide in full and on time information on the implementation of ownership rights and on management, administration and the business of the company at the request of an inspector.
4. Inspectors must meet the following criteria and conditions:
(a) To have full capacity for civil acts and not to be prohibited from management of enterprises as stipulated in this Law;
(b) Not to be a related person of a member of the Members’ Council, the chairman of the company, the director or general director or the person authorized to directly appoint an inspector;
(c) To have professional qualifications or work experience in accounting and auditing or professional qualifications and practical experience in the main lines of business of the company or other criteria or conditions as stipulated in the charter of the company.
Article 72 Obligations of members of the Members’ Council, the chairman of the company, director or general director and inspectors
1. Members of the Members’ Council, the chairman of the company, director or general director and inspectors shall have the following obligations:
(a) To comply with the law, the charter of the company and decisions of the company owner in the implementation of delegated rights and duties;
(b) To perform delegated rights and duties honestly, diligently and to their best ability to ensure the maximum lawful interest of the company and the company owner;
(c) To be loyal to the interests of the company and the company owner; Not to use information, know-how, business opportunities of the company, or to abuse his or her position and power nor to use assets of the company for the personal benefit of himself or herself or other organizations or individuals;
(d) To notify the company in a timely, complete and accurate manner of the enterprises of which he or she and his or her related person is the owner or holds shares or a controlling share of capital contribution. This notice shall be displayed at the head office and branches of the company;
(dd) Other obligations stipulated by this Law and the charter of the company.
2. The director or general director shall not be entitled to any pay rise or bonus when the company is unable to pay all of its due debts.