Whether you’re interested in forming a corporation or are just curious, it’s understandable to wonder, “What does the President of a Corporation do?” Traditionally the President of a Corporation is the highest executive officer. The Bylaws of the Corporation set forth the role of the President. Some businesses have also established higher offices, such as the Chief Executive Officer, which may be above the President as the top executive officer. The President’s express authority comes from the Bylaws and any other resolutions passed by the Board of Directors. Some of these express authorities are the power to sign contracts and manage the day-to-day business of the Corporation.
Counterparties can rely upon the signature of a President to know that a Corporation will be bound to an agreement without being able to disavow the contract as not being authorized. This is because the President is cloaked with authority to act on behalf of a Corporation. Likewise, Vice Presidents have authority to bind the Corporation. Sometimes the VPs are limited in their titles to specific aspects of the Corporation, like Vice President of Marketing or Vice President of Operations.
Other officers set forth in Bylaws include the Treasurer and Secretary. The Treasurer keeps track of the Corporation’s finances, including its funds in bank accounts. Often times the treasurer has signing privileges for checks. The Secretary holds and maintains the Corporation’s meeting minutes. Often the Secretary must attest to contracts signed by the President to confirm the President has authority to sign the contract.
In addition to the officers of a Corporation, the corporation has two other layers that make up its structure. It is owned by shareholders who elect a board of directors to oversee the management and set the strategy and objectives of the Corporation, to be carried out by the officers. Daily operations are handled by officers, and that includes the President of the Corporation. But what does the President of a Corporation do, exactly? Here’s what you need to know.
So, What Does the President of a Corporation Do on a Regular Basis?
The President is typically the highest-ranking officer of a Corporation. In some larger businesses, the President or another person will be the Chief Executive Officer (CEO). The President’s duties may vary by Corporation. But, in general, a Corporation’s President typically has the following responsibilities:
- Executing the board’s vision and direction
- Providing general leadership for the Corporation and its officers
- Meeting with top officials in the Corporation to ensure the organization is running well
- Managing the employees
- Overseeing finances
- Strategizing areas of growth for the Corporation
It is possible for one person to hold the position of multiple officers in a Corporation. For example, in small businesses, it is possible for one person to be the Corporation’s President, Secretary, and Treasurer, as well as its sole Director and only Shareholder.
The role of the President should be clearly spelled out in the Corporation’s Bylaws.