Change of company director

Change of the person holding the position of company director

Changing the director of an LLC in Kyiv is a natural part of a legal entity’s activities, since the success of a company depends proportionally on the quality of employees’ work and the professionalism of the director.

Information about the head of a legal entity and the data of persons authorized to represent the legal entity in legal relations with third parties and having the right to act on behalf of the legal entity without a power of attorney are entered into the Unified State Register of Legal Entities, Individuals-Entrepreneurs and Public Formations.

Who can become a director?

The director of a legal entity can be the owner of property, a participant (shareholder) of the company, or an official. In the latter case, a contract is signed with the head of the legal entity.

The general director has the right to act on behalf of the legal entity without a power of attorney. Other members of the directorate also have this right. By the way, the supreme body may, within the framework of the law, transfer part of its powers to the head.

Why change the director?

In Kyiv, practice shows that an unfavorable outcome is quite possible if changing a company’s director is vitally necessary but is postponed indefinitely. Changing the company’s director may be the result of a poor choice — the manager may simply fail to cope with their duties, may steer the company in the wrong direction, or, ultimately, may take the initiative to resign. Therefore, changing the director at an enterprise is a normal part of any company’s life process.

Change of director for LLC and JSC

Of course, the process of changing a director involves not only changes in the composition of the management body, but also requires a sequence of actions and coordination with the registration authorities, the fiscal service and even banking institutions.

The change of a director of a TOV (LLC) includes a meeting of participants, adoption of a decision to change the composition of the management body, and making changes to the EGR information. The head of a branch is changed by the decision of the main legal entity and in accordance with the Regulations (the branch’s constitutive document). Changing the director of a ZAO (ChAO) is a similar procedure; however, a joint-stock company is obliged to interact with the National Securities and Stock Market Commission and the National Depository of Ukraine. These bodies regulate relations in the securities market and maintain the depository accounting of shares.

Note that the company’s operational matters can be decided by either the director or the general director. The title ‘director’ is used when the company’s executive body is sole, and ‘general director’ when the body is collegial.

The change of the general director in an LLC is decided at the general meeting of participants, and the general director cannot chair such a meeting. The question of changing the head must be included in the agenda of the meeting. To change the director, the required number of participants must vote for the issue. At the same time, the meeting itself must be legitimate — that is, a quorum is required. At the meeting, the change of the LLC’s general director is formalized by a Protocol. Next, the registration of the director change is provided for, which procedure includes submitting documents to the state registrar.

A change in the general director’s passport data, for example a change of surname, can also be entered into the EGR information.

Our services for changing a director include:

For changing the director we need from you:

Specialists of the law firm “Nakaz” provide director change services in Kyiv. True professionals in their field, our staff will replace the head of the legal entity efficiently and in the shortest possible time. And if you want to handle this process yourself — we will answer all your questions.