If a Director was caught stealing how to call him to account?

The conditions of General Director material responsibilities are established in an Employment Agreement. It is possible to conclude the individual full material responsibility agreement with the certain rank of Managers.

As it is specified in the RF Labor Code the Director of a company bears the full material responsibility for direct actual damage caused to the company. The direct actual damage is:

- the existent decrease of available assets of the company or deterioration of mentioned assets (including the property of the third parties which is kept on the employer’s territory, in case if the employer is responsible for safety of this property),

- Company necessity to arrange the expenses or extra payments for purchasing or/and properties recovery or damage compensation caused by the Director’s activity towards the third parties.

Besides in many cases the Director of a company compensates for the damages caused to the company with his fault activity. The damages in this case are the actual loss and the loss of the benefits as well.

When the Director was caught stealing the damage is enforced if he doesn’t pay it off of his own free will.

©Professional consultation of the “RosCo” company

Date of foundation
company «ROSCO»
2004
Membership in professional organizations:
SRO NP «Audit Chamber of Russia»
(Certificate No 1809 dated 28.12.2009)
Chamber of Tax
Consultants
(Certificate No 78)
NP «Partnership of RSE»
(Russian Society of Evaluators)
Membership in public association:
Moscow Chamber
of Commerce and Industry
(Certificate No 123-973 dated 21.12.2009)
Non-Profit
Partnership of Turkish Entrepreneurs (RTIB)
Ratings:
A++1+++1++[%]
(as per the results of 2009 -
А++1+++1+[%])
Company
is included in the register of reliable enterprises of Moscow
Certificates of conformity:
Certificate of conformity to the requirements of GOST R ISO 9001-2008 (ISO 9001:2008)
Professional
liability
is insured