Is the CEO mandatory in the Fund business?
The term Chief Executive Officer (CEO) often refers to the most senior decision-maker in the fund business. It is a common title that almost all fund businesses have. And this leaves the same question of whether a CEO is someone every fund business must have under the Singapore legal framework? This article will give details about a CEO in a fund business, their roles, and some of the requirements. Read on!
Who is a CEO of a fund business?
In the Singapore’s Companies Act (CA), a CEO is either an employee or someone working on behalf of the company whose primary role is to manage a part of the whole business. They conduct everyday business operations, and the employees are under them. The Singapore Companies Act states that the term CEO refers to any individual whose job includes the mentioned roles regardless of the title the company gives them. This detail means that even if a company refers to an individual who performs these duties as the Managing director or the founder, Singapore law considers them the CEO.
Its vice versa is also true that if an individual is officially titled as the CEO but doesn’t take part in the management and business conduct, then the Singapore law doesn’t consider them as the CEO.
Is it compulsory for Fund business to have a CEO?
Singapore is one of the largest Fund business centers globally; hence many financial experts migrate into the country to conduct their businesses. However, the country also features a stable regulatory framework that people must follow to don’t crush with the government. One of the frequently asked questions includes the CEO’s legal necessity in the fund business. Singapore Regulatory Framework states that for a company to become legit in the country, it needs at least one Singapore-based person to take up the legal title of director and become in charge of its day-to-day operations. As a result, it’s not mandatory to have a CEO in the fund business.
However, in larger businesses, the management team often gives titles such as CEO and Managing director for easy running. Also, companies can have more than one CEO.
Roles of a CEO in a fund business
- Principally managing the fund business
- CEOs are in charge of other employees in the company and ensures that their day-to-day operations run smoothly.
- They are an executive decision-maker who play a crucial role in most of the choices that a fund business take
Conclusion
Generally, many people believe that a company needs a CEO to operate. However, the Singapore laws don’t agree with these assumptions that people frequently put in mind. The country’s regulatory framework defines the Chief Executive Operator stating who this title should refer to in the fund business. Also, a director is the only requirement for a company to become registered under Singapore laws. Are you thinking of kicking off a fund business? If yes, there are some things you must learn about the governance team, and this article offers you some of the pointers you can follow to learn the necessary facts.
