Is it possible to terminate the employment agreement with the principal (director thereof) of a commercial company, and namely, in the joint-stock company?

Yes, it is possible. As it is known, the labor relations of the participants in the joint-stock company are governed by the norms of the labor law in Russia, save and except special features provided for under the Law "On Joint-Stock Companies in the Russian Federation" of 24.11.95 No 208-FZ.

Pursuant to clause 3 Article 69 of the Law, upon election of the General Director by all shareholders, if otherwise not provided for under the Charter, pursuant to a prescription of part 2 Article 17 of the Labor Code of the RF, the employment agreement (contract) for a definite term shall be concluded with the same.

A premature termination of the contract shall be made at the general shareholders' meeting, if in compliance with the Charter this is not referred to the competence of the Board of Directors (Supervisory Board) of the joint-stock company.

The grounds for a dismissal may be found in clause 2 article 33 of the Labor Code of the RF which speaks about a failure to comply with the office held by the principal, unsatisfactory qualification or a state of health preventing the continuation of his office duties.

The circumstances of such a dismissal shall be supported by evidence. Formal references to the fact that the principal lacks the necessary business qualities, if, of course not otherwise provided for under the contract, do not constitute an unconditional ground for termination of the employment agreement (contract).

Moreover, established by clause 4 article 254 of the Labor Code of the RF are additional grounds for termination of labor relations with the principal of a commercial company. Should separate business performances of the principal provided for under the employment contract for a definite term, be absent, one may put up the issue of his actual failure to comply with the office held.

Thus, if there are no grounds for termination of the employment contract with the principal of a commercial company pursuant to article 33 of the Labor Code of the RF, the issue on termination of labor relations shall be settled on the grounds of the terms of the contract, where should be specified additional grounds for termination hereof. Let's note that the matter in hand is not only about the principal's, as pursuant to the general rule under article 5 of the Labor Code of the RF, the terms which worsen the status of the employed may not be provided for under the employment agreements (contracts).