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21.10.2021

Resolving the issue of dismissal of the CEO

Project manager:

October 21, 2021

Resolving the issue of dismissal of the CEO

A major supplier of automotive oils asked us to resolve the conflict that had arisen when the current CEO was dismissed. The director considered the dismissal illegal and also demanded a bonus equal to his annual income for the period worked. The dismissed CEO filed such demands in court. In court, the former director referred to the fact that he was not promptly notified of the termination of the employment contract. The situation was complicated by the fact that the former director provided the court with a copy of the alleged bonus provision and, upon dismissal, must be paid a bonus for the calendar year worked.

As part of the litigation, BBNP lawyers carefully examined the arguments of the former director, and also analyzed all documents available to the client's company. Based on the results of this analysis, it turned out that the company did not have the original bonus provision, and the participants' resolution approving such a provision was not actually implemented by this former director. The dismissal procedure itself did not have any violations, as the director was informed of the urgent nature of his employment contract from the very beginning. In addition, his term of office was determined by the Client's Company Charter and was not extended. Despite the many hearings held and the length of the dispute, we managed to defend the client's interests and the courts of three instances agreed with our arguments.

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