According to the job description of the financial director, the latter has the right to:
represent the company in resolving financial issues with credit institutions, insurance and investment companies, tax authorities and other authorities;
to form a list of duties of employees subordinate to him;
request from departments information and documents that he needs to perform his duties;
propose to the head of the business owner database company to impose financial and disciplinary liability on officials based on the results of the financial audits carried out;
participate in the preparation of orders , instructions, guidelines, estimates, contracts and other documents related to the financial sector;
resolve issues of financial and economic activities of the business with department heads;
give instructions to heads of departments related to the proper organization and conduct of financial work;
sign documents of the relevant nature;
to endorse materials related to the financial and economic activities of the enterprise – these include plans, forecast balances, reports, etc.;
correspond with structural divisions and third-party organizations, tax authorities, state authorities and local governments, if such communication involves resolving financial issues;
get acquainted with the documents establishing his rights, responsibilities, and criteria for assessing the quality of his work;
propose to management to make changes to the list of duties specified in the instructions;
demand the provision of organizational and technical conditions and the execution of documents that are required for the specialist to continue to perform his professional duties.
If we talk about the essence of the work of the financial director, he submits for consideration by the head of the company:
representations : on the appointment, transfer, dismissal of their subordinates from their positions; on the encouragement of specialists who have demonstrated themselves positively;
proposals to bring to disciplinary and material responsibility persons who violated industrial, labor and financial discipline.
The CFO is responsible for:
improper/incomplete performance of duties specified in the job description. Responsibility is determined by the labor legislation of the Russian Federation and the agreement between the specialist and the enterprise;
offenses committed during professional activities. Responsibility is established by the current administrative, criminal and civil legislation of the Russian Federation;
causing material damage to the company. Here, liability also depends on the norms of Russian legislation and the specifics set out in the employment contract.
Case: VT-metall
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Area of responsibility of the financial director
The company's financial director, like other managers, may be subject to various types of liability. Violation of labor discipline and job responsibilities entails disciplinary sanctions. Tax, civil - if damage is caused to the enterprise - and criminal liability are also possible.
Criminal liability of the financial director
Punishment under the Criminal Code of the Russian Federation assumes that the specialist committed illegal actions in the position of chief accountant or CEO. But the financial director may also be subject to appropriate punishment if he gave illegal advice to the manager - such violations are considered as committed by a group of persons by prior conspiracy.
There are known cases when this specialist was brought to justice together with the board of directors and the chief accountant for refusing to pay taxes and concealing large amounts of money in accordance with Part 1 of Article 199 of the Criminal Code of the Russian Federation. Subsidiary liability of several persons may be applied here.