Legal responsibilities of senior officials in commercial companies in Spain and Europe?
Today we are going to talk about the senior officials of companies and commercial companies. In Spain, directors and administrators have the responsibility to manage (it seems logical) and represent society, taking care of the interests of the organization and its shareholders. In Spain, the Capital Companies Act determines that directors must have the necessary knowledge to perform their duties, and are expected to make informed decisions based on an adequate assessment of the company’s risks and opportunities. This information thing is important, because services like ours are very useful for decision making.
In addition, directors and managers must comply with the required accounting and tax obligations. They must also submit regular reports to shareholders and regulatory bodies. This is not the same in all companies, it depends on the industry, the shareholder model… They are also obliged to keep company information confidential and avoid any conflict of interest.
In Europe, the obligations and responsibilities of directors and managers are very similar. The European Union Directive on the exercise of certain shareholder rights in listed companies states that these positions must work in the interest of the company and its shareholders, and must act responsibly and transparently in all their decisions.
One important thing is that the responsibility of directors and administrators extends to the entire organization. This means that they must inform shareholders and regulators of any conflict of interest, and take steps to prevent abuse of power, malpractice or even corruption.
Senior managers in Spanish and European commercial companies have the responsibility to ensure the long-term sustainability of the company, to comply with their legal and ethical obligations, and to protect the interests of the entire organization. Hardly anything.
However, while these requirements and responsibilities seem clear and simple, in practice, many challenges always arise. One of the biggest challenges is to ensure the independence and impartiality of directors and administrators. This is especially important in the case of large companies where the interests of different groups of shareholders may conflict.
For this, it is essential that directors and administrators are selected in a rigorous and transparent manner, and that they ensure that they have the knowledge and experience necessary to fulfill their responsibilities, which are very important. The ideal is to always work transparently and for that we must establish effective control and supervision mechanisms, as well as build a culture of responsibility.
Another common challenge is to maintain an appropriate balance between strategic decision-making and the daily management of the company. Directors and managers must ensure that the company has a clear vision and a well-defined strategy.
