5 Things to Know About Business Administrators in Spain
In the complex business fabric that makes up the Spanish economy, there are key figures that guarantee the proper functioning of companies and their interests. One of these figures, perhaps the most essential, is that of the administrator. Whether you are an entrepreneur taking their first steps, an investor analyzing the landscape of a company or simply someone interested in understanding the corporate dynamics of Spain, it is essential to have a clear vision of who is the administrator, what their responsibilities are and how they can influence the future of a company. In this article, the InfoEmpresa.com team, we will explain five fundamental points you should know about business administrators in Spain.
- Definition and main role : In Spain, the term “administrator” mainly refers to the legal figure responsible for the management and representation of a commercial company, whether limited (S.L.) or anonymous (S.A.).
- Types of Administrators :
- Single Administrator : As the name suggests, it is a single individual who has the power of decision. It’s common in small businesses or startups where the founder also plays the role of administrator.
- Solidarity Administrators : In this case, there are several administrators and any of them can act on behalf of the company. That is, they do not need to make decisions together, but they must be aware of the actions of others to maintain coherent management.
- Joint Managers : Unlike supportive managers, joint managers must act together to make decisions. In general, companies establish a minimum number of joint managers who must agree for an action to be considered valid.
- Board of Directors : This figure is more common in public limited companies. It is comprised of a group of people who make decisions collectively.
- Legal Responsibilities and Obligations : Administrators in Spain not only have management and representation powers, but they also assume a series of legal responsibilities. These responsibilities are both to the company and to third parties. It is crucial for any administrator to be aware of the Capital Companies Act, which regulates their duties. Failure to act in accordance with the law may result in criminal, civil or administrative liability. For example, in the event of a company’s insolvency, if it is determined that there has been negligent or fraudulent management on the part of the administrator, the administrator may be responsible for personally covering the company’s debts.
- Remuneration : Although it is common for directors to receive compensation for their functions, this is not mandatory and must be provided for in the company’s statutes. It is vital that, if it is decided to remunerate managers, it is done in a clear and transparent manner, following fiscal and labor regulations. Compensation is often linked to company performance, which can encourage effective management.
- Termination and Renewal : Administrators do not hold office indefinitely. The company’s statutes or appointment agreement usually state the duration of your role. At the end of this term, they can be re-elected or dismissed. In addition, they can be dismissed at any time if the partners or shareholders so decide at a general meeting. It is important that administrators are aware of the terms of their appointment to avoid surprises and to prepare in advance for any renewal or succession process.
Understanding the role, responsibilities and peculiarities of managers in Spain is crucial for anyone who wants to enter the business world or who simply wants to better understand how companies work in this country. Correct administration is, in many cases, the axis that can determine the success or failure of an organization.
