Types of Companies and Corporate Positions

7/30/2019 Types of Companies and Corporate Positions

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4. LEGAL FORMS OF COMPANIES

The legal forms of companies, such asthe corporations are: Public limited liability company (PLC)

Limited liability company (LLC) General partnership Limited partnership

Sole trader Co-operative Limited Liability Partnership


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5. PUBLIC LIMITED COMPANY (PLC)

The shares are traded publicly

The liabilities for legal actions and the debt the companymay face are of the companies and not of theshareholders

The CEO is elected by a Board of Directors

The BOD is elected by the shareholders after certainpredetermined interval

Special or extra share holder meetings are called in caseof special situation when the shareholders deem itnecessary

Usually listed in one or many Stock exchanges Rules of stock exchanges define some minimums to

capital, cash flow and market value for PLCs to be viablefor trading


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6. LIMITED LIABILITY COMPANY (LLC)

Known as Ltd. in UK and Inc. in US The shares are not traded publicly

The owners are usually not liable for legal actionsand debts the company may face

Managed by a CEO in US and by Managing Directorin UK

Both are elected by a Board of Directors

The BOD is elected by the share holders in

scheduled meetings. Extra share holder meetings can usually be called up

if enough share holders deem it necessary for somereason


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7. GENERAL PARTNERSHIP-1 Formed by two or more persons

The owners are all liable for legal actions and debts thecompany may face personally

Created by agreement, proof of existence, etc.

In General: A form of business entity in which 2 or moreco-owners engage in business for profit. For the mostpart, the partners own the business assets together andare personally liable for business debts.

Sharing Profits: In the absence of a partnershipagreement, profits are shared equally amongst thepartners. A partnership agreement, however, will usuallyprovide for the manner in which profits and losses are tobe shared.


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8. GENERAL PARTNERSHIP-2

Unlimited Personal Liability for Losses: EachPartner is, jointly and severally, personally liablefor debts and taxes of the partnership. Forexample, if the partnership assets are insufficient

to satisfy a creditor's claims, the partners'personal assets are subject to attachment andliquidation to pay the business debts.

Liability for a partner's debts: Each general

partner is deemed the agent of the partnership.Therefore, if that partner was apparently carryingon partnership business, all general partners canhe held liable for his dealings with third persons.


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9. GENERAL PARTNERSHIP-3

Each partner may be held jointly liable for a co-partner'swrongdoing

Technically, a partnership terminates upon the death, disability,or withdrawal of any one partner. Generally, in such case theshares of the departed partner (s) are purchased by theremaining partners

In the absence of a partnership agreement, each generalpartner has an equal right to participate in the managementand control of the business. Ordinary disagreements aredecided by a majority of the partners. Extraordinarydisagreements and amendments to the partnership agreementrequire the consent of all partners

Unless otherwise provided in the agreement, no one canbecome a member of the partnership without the consent of allpartners. However, a partner may assign his share of theprofits and losses and right to receive distributions("transferable interest").


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10. LIMITED PARTNERSHIP AND SOLE TRADER

LIMITED PARTNERSHIP Like a General Partnership except for the fact

that there is/are so called silent partners who justinvest capital into the business without any

liability the company may face.SOLE TRADER Run by a single person who provides entire

capital.

He makes all the decisions He is personally liable for legal actions and

debts. The profit he makes belongs to him


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11. CO-OPERATIVE AND

LIMITED LIABILITY PARTNERSHIP

CO-OPERATIVE A legal entity owned and democratically controlled by itsmembers.

Members often have a close association with the enterprise asproducers or consumers of its products or services, or as itsemployees. There are two kinds of Co-operatives: Owned collectively by the customers Owned and managed collectively by the workforce

LIMITED LIABILITY PARTNERSHIP

A business structure under which one partner might not bepersonally liable for the actions of another partner.

It offers considerably more protection for partners compared toa traditional partnership.

The limited liability in some ways makes an LLP something ofa hybrid between a corporation and a traditional partnership.


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13. GENERAL DISCUSSION

The activities of large corporate entities are performed bya large number of workers placed at different levels

Successful functioning of the corporations depends onthe collective effort of the people engaged at differentcorporate strata

Corporate positions are named differently, known ascorporate titles or business titles that act as a means ofidentifying and distinguishing those positions functions

The functions ideally should be different. However,experience show many overlaps that often createmanagement difficulties

An ideal organization makes functions and titles veryspecific to avoid internal and external confusions.


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14. TOP CORPORATE POSITIONS-1

The C-level positions are the top most level executive

positions. These refer to 3-letter initials starting with "C"

and ending with "O: "Chief. Officer

The traditional offices are:

Chief Executive Officer (CEO)

Chief Operations Officer (COO), and

Chief Financial Officer (CFO).

In banking, insurance, and other financial services

companies positions, such as Chief Administrative Officerand Chief Risk Officer positions are found.


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15. TOP CORPORATE POSITIONS-2 Technology companies (telecom, IT sector companies,

etc.) may have:

Chief Technology Officer (CTO) and

Chief Information Officer (CIO)

In creative/design companies (such as film studios,

comics companies or a web design companies), there is

sometimes a Chief Creative Officer (CCO), responsible for

keeping the overall look and feel of different products.


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16. IDEAL TOP CORPORATE HIERARCHY-1

Duties and responsibilities vary in accordance with the

positions and the titles in the corporate system

Some companies designate Chairman and CEO as the top

executive, while the number two is the President

Other companies have a President and CEO without officialdeputy

Typically, C-level managers are "higher" than Vice Presidents,

although many times a C-level officer may also hold a vice

president title, such as Executive Vice President and CFO. The board of directors is technically not part of management

itself, although its chairman may be considered part of thecorporate office if he or she is an executive chairman.


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17. IDEAL TOP CORPORATE HIERACHY-2

A corporation often consists of different

businesses, whose senior executives report

directly to the CEO. If organized as a divisionthen the top manager is often known as an

Executive Vice President

If that business is a subsidiary with considerably

more independence then the title might beknown as Chairman and CEO.


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18. SUPERVISORY BOARD VS EXECUTIVE

BOARD

In some EU in some Asian countries, there are two separate

boards:

Executive Board for the day-to-day business and

Supervisory Board for control purposes (elected by the

shareholders). In these countries, the CEO presides over the executive board

and the chairman presides over the supervisory board, and

these two roles will always be held by different people.

This ensures a distinction between management by the

executive board and governance by the supervisory board.

Above is similar to the government structure that makesdistinctions between the political cabinet and the civil service.


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19. US CORPORATE MODEL

In the United States, the Board of Directors is

elected by the shareholders and is often equivalent

to the Supervisory Board in EU countries

The Executive Board is generally known as the

Executive Committee or Executive Council in US,

composed of the division/subsidiary heads and C-

level officers report directly to the CEO, who

performs dual function: both as head of the BOD and

The EB/EC.


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20. CORPORATE TITLES-1 Chairman of the Board: Presiding officer of the corporate board of

directors.

Chief Architecture Officer (CAO): A relatively new executive-levelposition at a corporation, company, organization, or agency, typically

reporting directly to the CEO or board of directors. The CAO isresponsible for the architecture of the whole enterprise.

Chief Academic Officer (CAO): In some academic institutions theCAO is in charge of all Academic aspects of the learning institution.

Chief Accounting Officer (CAO)

Chief Accounting Officer (CAO)

Chief Analytics Officer (CAO): High-level corporate manager withoverall responsibility for the analysis and interpretation of datarelevant to a company's activities; generally reports to the CEO.

Chief Audit Executive (CAE): High-level 'independent' corporateexecutive with overall responsibility for the internal audit


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21. CORPORATE TITLES-2 Chief Business Officer (CBO)

Chief Business Development Officer (CBDO).

Chief Brand Officer (CBO): A relatively new executive-

level position at a corporation, company, organization, or

agency, typically reporting directly to the CEO or board of

directors. The CBO is responsible for a brands image,

experience, and promise, and propagating it throughout

all aspects of the company. The brand officer overseesmarketing, advertising, design, public relations and

customer service departments.


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22. CORPORATE TITLES-3 Chief Commercial Officer (CCO): The executive

responsible for commercial strategy and development

Chief Communications Officer (CCO)

Chief Compliance Officer (CCO): In charge of regulatory

compliance, especially Sarbanes-Oxley

Chief Content Officer (CCO): The executive responsible

for developing and commissioning content (media) for

broadcasting channels

Chief Creative Officer (CCO)

Chief Credit Officer (CCO)


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23. CORPORATE TITLES-4 Chief Customer Officer (CCO): Responsible in

customer-centric companies for the total relationship

with an organizations customers.

Chief Data Officer (CDO)

Chief Debriefing Officer (CDO): Responsible for

getting the status, and maintaining forward motion in

production

Chief Design Officer (CDO) Chief Diversity Officer (CDO)

Chief Electrification Officer (CEO): Responsible for

electrical generating and distribution systems


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24. CORPORATE TITLES- 5 Chief Engineering Officer: Responsible for

technology/product R & D and/or manufacturing

issues in a technology company. This position isgenerally separate from any internal IT functions.

This title occurs more in those technology

companies that make products other than

software, but increasingly CTO is used insteadnow in both software and non-software industries

alike to refer to overseeing the development of

technology being commercialized.


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25. CORPORATE TITLES- 6Chief Executive Officer (CEO)/Executive Director for thenonprofit sector (US), Chief Executive/Managing Director(UK) and some other English speaking countries).

Highest ranking management officer of a corporation

Has final decisions over human, financial, environmental andtechnical operations of the corporation.

The CEO is also a visionary, often leaving day-to-dayoperations to the President, COO or division heads.

Other corporate officers such as the COO, CFO, CIO, anddivision heads report to the CEO.

Often the Chairman of the Board. Many public companies have been separating the roles ofChairman and CEO to improve corporate governance.

President and CEO is a popular combination if there is aseparate chairman.


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27. CORPORATE TITLES- 7

Chief Executive Manager CEM (US): It is thehighest ranking management person. His role iscomparable to the role of CEO within CG.

Chief Financial Officer CFO: High-level corporateofficer with oversight of corporate finances; reports tothe CEO.

Chief Human Resources Officer (CHRO)

Chief Information Officer (CIO): High-level corporatemanager with overall responsibility for the company'sinformation resources and processing environment;generally reports to the CEOorCOO.


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Chief Intellectual Property Officer (CIPO): Responsible for themanagement of the IP assets and potential IP-related liabilities of theenterprise

Chief International Officer (CIO): Responsible for development andimplementation of overseas markets

Chief Investment Officer (CIO): High-level corporate officerresponsible for the assets of an investment vehicle or investmentmanagement company and/or responsible for the asset-liabilitymanagement (ALM). Reports to the CEOorCFO.

Chief Knowledge Officer (CKO): Responsible for managingintellectual capital and the custodian of Knowledge Managementpractices, usually in a legal organization

Chief Legal Officer (CLO)/General Counsel/GC

Chief Learning Officer (CLO): Responsible for all Learning/TrainingOperations

Chief Marketing Officer (CMO)


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29. CORPORATE TITLES- 9 Chief Medical Officer (CMO): Responsible for

scientific and medical excellence of the

company's research, development and products

Chief Operating Officer (COO)/ Director of

Operations for the nonprofit sector: High-level

corporate officer with responsibility for the daily

operation of the company; reports to the CEO.The COO often also carries the title of President,

especially if the number one is the Chairman and

CEO.


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30. CORPORATE TITLES- 10 Chief Press Officer (CPO)

Chief Procurement Officer (CPO) Chief Product Officer (CPO): Responsible for all product-related matters. In small and

mid-sized companies it can also play the role of the COO.

Chief Program Officer (CPO): High-level corporate officer with responsibility for the

daily operations of an organization's programs. Reports to the CEO. Chief Quality Officer (CQO): Responsible for setting up quality goals.

Chief Relations Officer (CRO): Officer responsible for key external relationshipsincluding Investor Relations, Government Relations and sometimes Public Relations

or Communications.

Chief Research Officer (CRO): Responsible for Research

Chief Revenue Officer (CRO): Responsible for all revenue within the organization

Chief Risk Management Officer (CRO): Common in financial institutions.

Chief Sales Officer (CSO): Responsible for all sales/revenue within the organization

Chief Science Officer (CSO): Responsible for research, development and newtechnologies.

Chief Security Officer (CSO)

Chief Strategic Planning Officer (CSO)/(CSPO)

Chief Supply Chain Officer (CSCCO): Responsible for the supply chain management

of the company.


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Director: A manager of managers within an organization who is oftenresponsible for a major business function and who sometimes

reports to a Vice President. Often used with name of a functional

area; Finance Director, Director of Finance, Marketing Director, andso on. Not to be confused with a Member of the Board ofDirectors who is also referred to as a Director. Alternatively, amanager of managers is often referred to as a "senior manager' or as

an "associate vice president", depending upon levels of

management, and industry type.

Fellow: Often a very senior technical position and is equal to a

director or VP

President: Legally recognized highest "titled" corporate officer, and

usually a member of the Board of Directors. There is much variation;

often the CEO also holds the title of President, while in other

organizations if there is a separate CEO, the President is then

second highest-ranking position.


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33. CORPORATE TITLES- 13 Secretary or Company Secretary: Reports to the Board of Directors and is

responsible for keeping the records of the Board and the company.

Secretary-Treasurer: In many cases, the offices

ofSecretaryand Treasurerare held by the same person. In this case, theposition is commonly referred to by the combined title Secretary-Treasurer

Treasurer: Legally recognized corporate officer entrusted with the

responsibility of caring for company funds

Associate: Often used to indicate a customer service position ortemporary/part-time worker.

Supervisor

Foreman

General Manager or GM

Manager

Counsel: A lawyer working on a part-time or temporary basis for a companyor law firm.

Owner/Proprietor or Sole Proprietor

Partner: Used in many different ways. This may indicate a co-owner as in a

legal partnership or may be used in a general way to refer to a broad class

of employees or temporary/contract workers who are often assigned field or

customer


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Principal: May refer to an owner of the business or ahigh-level technical worker such as Principal Engineer orPrincipal Scientist.

Vice Chairman: Officer of the Board of Directors who maystand in for the Chairman in his/her absence. However,

this type of Vice Chairman title on its own usually hasonly an advisory role and not an operational one.

Vice President: Middle or upper manager in acorporation. They often appear in various hierarchicallayers such as Executive Vice President, Senior VicePresident, Associate Vice President, or Assistant VicePresident, with EVP usually considered the highest andusually reporting to the CEO or President.

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Types of Companies and Corporate Positions