In the Spanish business environment, the configuration of the administrative body is a crucial aspect that affects decision-making and the direction of a company.
A management body is the structure designated for the management and direction of the company, and its configuration may vary depending on the needs and preferences of society.
Spanish legislation offers various options for the organisation of these bodies, each with its own characteristics and responsibilities.
In this post, we will explore some of the most common types of governing bodies.
Functions of the administrative bodies
Social administrators play the most important role in the company:
- They execute the agreements adopted by the board.
- They manage or administer the company of which the company is the owner.
- They represent the company before third parties.
El company management body It will be the one agreed upon in the company bylaws.
Can be: a sole corporate administrator, two joint or several administrators, or even a board of directors.
Therefore, it may have, depending on the needs of the company and the preferences of the partners, a variable structure.
Types of administrative bodies
The administrative body is necessary and permanent, and integrates, together with the general meeting, the power structure in capital companies.
Specifically, the following models of administrative body result.
Sole administrator
El sole administrator refers to the administration or management, as well as the representation of the company in a single person, physical or legal.
Joint or joint administrators
In solidarity or joint administration Each social administrator has all the powers of the administrative body, has full powers of management and representation vis-à-vis third parties.
In the case of joint or multiple owners, in the case of the anonymous, There could be two, since, above that number, the constitution of a board of directors is mandatory; and, two or more joint directors in the limited company, in which the previous legal obligation does not exist.
Board of directors
A board of directors may also be created, volunteer in the limited company y mandatory in the case of the Anónima if more than two social administrators are appointed.
The Board of Directors will be the most appropriate form when there are differentiated groups of shareholders with diverse interests, since it will allow the representation of all of them on the Administrative Body.
This is the modality that has been adopted most in Public Limited Companies and family businesses since it allows the consideration of the proposals of all the administrators without causing the paralysis of the body.
What type of company administration is best?
The diversity of forms that the Administrative Body can assume finds its justification in the different needs that may arise in companies.
There is no single solution that is perfect for all societies.
The choice of a specific form must be carefully evaluated, and in any case, it is important to remember the convenient possibility of opting for an alternative form by including statutory provisions.
If you are thinking about creating your company and need help establishing it and legal advice, we can help you.
RRYP Global is a legal services firm specializing in Business law.
