How to Dismiss CEO

INTELLECT-S proves client’s right to dismiss CEO by corporate action.

INTELLECT-S represented the Russian affiliate of Pollena, a Polish producer of plastic containers for cosmetics, foods and household chemicals, in a civil suit filed by its ex-CEO dismissed for cause.

The Russian ex-CEO of OOO Pollena-Ural, found unfit for office and dismissed by the Polish owners of the business, sued the company in bad faith for various compensations totaling over RUB200,000, on grounds that the company failed to observe dismissal procedures prescribed by the Russian Labor code.

The trial court granted him the relief he sought, accepting only the principles of regulation of CEO employment by labor law, and prejudicially ignoring the regulation of the same matter by corporate law.

INTELLECT-S joined Pollena-Ural's defense counsel team in the appellate stage. The appeals court accepted the appellant's argument of the primate of corporate law and reaffirmed the validity and lawfulness of the dismissal, saving the client more than RUB200,000.

The success of INTELLECT-S's attorneys was the more notable that they stepped in the defense (1) only in the appellate stage of a (2) civil case in a general jurisdiction court which (3) normally disregards rules of corporate law, (4) in a grey border zone between conflicting provisions of corporate and labor law, where the matter (5) is regulated by neither fully and unambiguously.

Corporate Disputes, Corporate Law, Employment Disputes, Employment Law, Reduction of Staff

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