According to the state constitution, the Yang di-Pertua Negeri of Penang shall first appoint the chief minister to preside over the Executive Council and requires such chief minister to be a member of the Legislative Assembly who in his judgment is likely to command the confidence of the majority of the members of the Assembly and must not a Malaysian citizen by naturalisation or by registration.

The members of the Executive Council shall not hold any office of profit and engage in any trade, business or profession that will cause conflict of interest.

Chief ministers removed as leader of his or her party, or whose government loses a vote of no confidence in the Legislative Assembly, must advise a state election or resign the office or be dismissed by the Yang di-Pertua Negeri.

The legislative assembly unless sooner dissolved by the Yang di-Pertua Negeri with His Excellency's own discretion on the advice of the chief minister shall continue for five years from the date of its first meeting.

Conventionally, between the dissolution of one legislative assembly and the convening of the next, the chief minister and the executive council remain in office in a caretaker capacity.