Who Are Corporate Officers in a Business?

Business Law: What is a Corporate Officer?

When you form a corporation, you may run into terms that you might not have been previously familiar with. Such is the case with what corporate officers are and what they do.

Corporate officers are elected by the board of directors. In turn, the board of directors is elected by the shareholders or owner(s) of the corporation.

Generally speaking, corporate officers consist of: a president, vice-president, secretary, and treasurer. Each officer has his or her duties outlined in the corporation's bylaws. You can find definitions of these officers and their duties here along with an abundance of additional corporate information.

Who are Corporate Officers and What are Their Duties?

• The Corporation President: The corporation's president is the chief officer of the company and is responsible for overseeing and fulfilling the mission of the corporation. The president presides at all corporate meetings and has the general supervision of the operation of the business.
• The Corporation Vice-President: The corporation's vice-president is second-in-command and is responsible for planning, organizing, and directing activities that are geared toward achieving the goals of the company.
• The Corporation Secretary: The corporate secretary is responsible for all of the business' records and correspondence. The corporation secretary, in general, oversees the smooth operation of the business and makes sure that all corporate records are accurate and maintained.
• The Corporation Treasurer: The corporation treasurer is responsible for all of the company's financial policies, monetary procedures, and controls. The corporation treasurer receives and disperses company funds with the approval of the board of directors.

Important Points to Remember with Corporate Officers:

• If you are not required to have a board of directors in your corporation, you and/or other shareholders in your company can choose the corporation's officers.
• If you do have a board of directors, ask for recommendations for corporate officers from them first. Since the board of directors elects the corporate officers, it is in the best interest of the company that the corporate officers and board of directors work well together.
• You can add or change different duties for corporate officers in your corporate bylaws.
• Do make sure trust is established with your corporate officers. Most, if not all of them, will be handling your company's funds and have access to financial records, business accounts, and bank accounts.
• Some states regulate the activities of corporate officers and board of directos. Be sure to check your state's statutes for additional information regarding your state's corporate requirements.

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