Head of an organization is a foreign citizen: manual

An article by Artem Boyko, Doctor at Law, Lawyer at the Law Firm "YUST", has been published in the “Trudovye Spory (Labour Disputes)” magazine (issue № 10, October 2011). The article is dedicated to how to nominate a foreign citizen General Director of a newly created Russian company.

Founders of newly created Russian companies – for example, foreign legal entities – frequently wish that a foreign citizen should become General Director. According to current legislation, the head of an organization is nominated simultaneously with its founding, which is stipulated in the decision of the general shareholders’ meeting or of the sole shareholder of the company (clause 2 of Article 11 of the Federal Law “On limited liability companies” № 14-FZ dated 08.02.1995, clause 2 of Article 9 of the Federal Law “On joint-stock companies” № 208-FZ dated 26.12.1995). This action of the employer is a legal fact, which serves as a base for arising of employment relations and for execution of an employment contract (Articles 16 and 275 of the Labour Code of the Russian Federation).

Labour legislation as well as economic companies’ legislation stipulates no limitations as to the nomination of a foreigner General Director of a newly created firm. But migration legislation makes this procedure specific in a certain way.

Readers of the publication will learn:

• What to do if a foreigner, who has not obtained a work permit, is to be indicated as the head of an organization at its registration;
• In what way conditions of hiring a general director depend on the status of a foreign worker;
• Whether an employment contract executed with a highly qualified employee is valid before the employee receives a work permit.

Full version of the publication is available at the website of the edition.