The Duties and Responsibilities of a Company Executive Director

This information provides a brief introduction to the duties and responsibilities of a company's Executive Director.

According to the Company Law of Mongolia, an Executive Director refers to an individual authorized to organize and manage the day-to-day operations of the company within the scope of powers specified in the company’s charter and the contract established with the Board of Directors (or the shareholders' meeting, if no board exists), and who has the right to represent the company without a power of attorney. [1]

The Executive Director assumes the following duties [2]:

1. To act within the powers specified by law, the company charter, and the employment contract, and to strictly fulfill their duties;

2. To make reasonable decisions in accordance with the best interests of the company;

3. To avoid conflicts of interest when making decisions and to disclose any potential conflicts of interest as they arise;

4. To refrain from accepting gifts or incentives from third parties while performing their job functions;

5. To refrain from disclosing information classified as company secrets to others or using such information for personal interests;

6. To be responsible for the accuracy of the company’s accounting and financial statements.

   
   

As an "authorized officer" of the company, the Executive Director bears the responsibility to compensate for any damages caused to the company or other parties due to the failure to fulfill the aforementioned duties using their personal assets. [3]

Sources:

[1] Company Law of Mongolia, Article 83, Section 83.1;

[2] Company Law of Mongolia, Article 84, Section 84.4, and Article 95, Section 95.4;

[3] Company Law of Mongolia, Article 84, Section 84.4.

Disclaimer: This article is intended for general informational purposes only and have been prepared in accordance with the laws in effect at the time of writing. For legal advice, please consult a professional attorney.