Procedure for Appointment of CEO for a New Term Changed

In September 2024, the following changes in the Russian legislation have been enacted: the option of extending the powers of general directors (CEO) has been abolished.

For LLCs it is now possible only to appoint a CEO for a new term. The changes imply that the resolution on the appointment of the sole executive body of a company must be certified by a notary public in Russia.

What does this mean for companies where the participants are foreign companies or foreign citizens residing abroad? For such companies, there are two options:

• Personal presence of a foreign citizen participant / legal representative of a foreign company at a notary's office in Russia;

• Issuance of a notarized power of attorney to the representative located in Russia to authorize them to conduct general meetings in Russia on their behalf, to adopt and sign resolutions.

In order to avoid the situation when the powers of the CEO have expired, the bank has blocked access to the bank accounts and there is still no power of attorney - Bellerage team kindly recommends you to prepare the necessary documents beforehand.