5 things you should know about business managers 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 your 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 the administrator is, what their responsibilities are and how they can influence the future of a company. In this article, the Infoempresa.com team will discuss five fundamental points you should know about business managers in Spain.
- Definition and main role : In Spain, the term “administrator” refers mainly 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 :
- Sole Administrator : As the name suggests, it is a single individual who has the decision-making power. It’s common in small companies 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 Administrators : Unlike supportive managers, joint managers must act together to make decisions. In general, companies establish a minimum number of joint administrators who must agree for an action to be considered valid.
- Board of Directors : This figure is more common in public limited companies. It is made up of a group of people who make decisions collectively.
- Legal Responsibilities and Obligations : Administrators in Spain not only have powers of management and representation, but they also assume a series of legal responsibilities. These responsibilities are both to the company and to third parties. It is crucial that any administrator is 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 the company’s insolvency, if it is determined that there has been negligent or fraudulent management by the administrator, the administrator could be responsible for personally covering the company’s debts.
- Remuneration : Although it is common for managers 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 a decision is made 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.
- Cessation and Renewal : Administrators do not hold office indefinitely. The company’s statutes or appointment agreement usually set out the duration of their 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 shareholders or shareholders so decide at a general meeting. It is important that managers 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. Good management is, in many cases, the axis that can determine the success or failure of an organization.
