What Is The Role of a President of a Corporation?

By Michael Bell Tuesday, October 16, 2018

what does the president of a company do

There are three tiers of power in a corporation: the shareholders are the owners of the company; the directors run the company and are responsible for the its overall management; and the officers handle the day-to-day matters of the company as well as carry out the directors’ decisions and policies.

The appointing of officers is done by the Board of Directors of the company. The most notable officer titles are President, Vice President, Secretary and Treasurer. However, if required, the board can appoint other officers, such as a Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Technology Officer (CTO), managers or any other title the board wishes to create.

Let’s first discuss what it takes to be the President of a company. The person who is President of a company is in the highest position within an organization and, in some cases, takes on the title of Chief Executive Officer as well. The President/CEO is often (but not always) the founder and owner of the business.  

  • He or she is in charge of creating, communicating and implementing the organization’s vision, mission and overall direction.
  • He or she is in charge of hiring, firing and managing all employees of the company.
  • He or she is in charge of leading, guiding, directing and evaluating all other officers, managers and employees, and ensuring they are carrying out the daily operations of the company.
  • He or she meets regularly with other officers or managers of the company to make sure that the decisions the organization needs to make are prescient and strategic.
  • He or she confirms that all officers and managers are conveying the company’s philosophies and guidelines to their own teams so that all employees understand the expectations of the company.
  • He or she oversees all the financials aspects of the company and maintains awareness of both external and internal opportunities for expansion, customers, markets, new industry developments and standards.

While these are general terms of a corporate President’s duties, they may differ in individual organizations. Here you can find more information on the General Corporation. Stay tuned for my next blog on the role and responsibility of the Vice President of a corporation.

 

Works Cited: https://www.thebalance.com/what-does-a-president-do-1919122

 

Disclaimer

THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.

More By Michael Bell

There are 2 comments left for What Is The Role of a President of a Corporation?

PY said: Wednesday, April 25, 2018

Can there be 2 co-corporate secretaries? with similar powers? or a secretary and an under-secretary acting only when the secretary is absent for example?

HBS Staff replied: Wednesday, April 25, 2018

Typically, the roles and titles are specified internally in thecompany's bylaws, so it is more or less up to the company.

Ben said: Monday, April 9, 2018

Can the duty of the President conflict with the Chairman?

HBS Staff replied: Monday, April 9, 2018

No, typically the President handles all the day to day matters and works alongside the Chairman to efficiently run the business.

Leave a Comment
* Required
* Required, will not be published