1. The Client's Situation
The client sought to confirm whether the current CEO had a duty to continue performing the duties of office after the expiration of the CEO's term until a new CEO was appointed. In addition, a review was needed regarding the legal validity of operating the company through a temporary agent.
2. Your Legal Team's Advice
Reviewing the articles of incorporation and the provisions of the Commercial Act, Your Legal Team:
(1) confirmed that even if the CEO's term expires, there is a legal obligation to continue performing the duties of office until a new CEO takes office;
(2) explained that operating the company under an agency arrangement requires careful review, as problems may arise in the exercise of representative authority under the Commercial Act and the articles of incorporation; and
(3) accordingly, proposed an approach that would maintain legal stability while preventing a vacuum in the company's operations.
3. Outcome
Through this advice, the client was able to determine a course of action that minimized legal risk while allowing the company's operations to continue without a vacuum in the CEO position.