{"id":4737,"date":"2024-01-31T08:28:35","date_gmt":"2024-01-31T08:28:35","guid":{"rendered":"https:\/\/www.keplerkarst.com\/doing-business-in-spain-v-como-opera-gestiona-sa-sl\/"},"modified":"2024-06-06T09:59:48","modified_gmt":"2024-06-06T09:59:48","slug":"doing-business-in-spain-v-how-management-structure-of-corporations-sa-sl","status":"publish","type":"post","link":"https:\/\/www.keplerkarst.com\/en\/doing-business-in-spain-v-how-management-structure-of-corporations-sa-sl\/","title":{"rendered":"Doing Business in Spain &#8211; V. How to set the management structure of corporations (Sociedades An\u00f3nimas or S.A.) and limited liability companies (Sociedad Limitada or S.L.)?"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Who can manage an S.A. (Sociedad An\u00f3nima) and an S.L. (Sociedad Limitada)?<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Continuing with our ongoing series on \u201cDoing Business in Spain,\u201d we will delve deeper into investors\u2019 options when selecting the most suitable management structure for their companies in Spain.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Specifically, we will focus on companies operating as either Sociedad An\u00f3nima (\u201cS.A.\u201d) or Sociedad Limitada (\u201cS.L.\u201d), which can be overseen by:&nbsp;<\/span><\/p>\n\n\n\n<ul>\n<li><span style=\"font-weight: 400;\">a sole administrator;&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">multiple administrators jointly or severally, considering that the joint form is preferable for significant matters, while the severally form is suitable for swift day-to-day decisions and enhanced operability; or&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">a board of directors.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><b>What are the requirements for appointment as an Administrator or a Director of a S.A. or a S.L.?<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">A company or an individual can be an administrator or director. As regards the requirements to be appointed as an administrator (in its various forms) or director, specific criteria must be met, including:&nbsp;<\/span><\/p>\n\n\n\n<ul>\n<li><span style=\"font-weight: 400;\">the individual must be of legal age (not applicable if it is a company);&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">they may not be disqualified by a court or bankruptcy law to hold positions; and&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">they may not be a public official whose position is related to the company\u2019s activity or be affected by a legal incompatibility. Moreover, other more specific requirements may be applicable, especially in the case of regulated businesses.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">Additionally, it is worth noting that a foreign person may be appointed as an administrator or director, but they must hold a <\/span><b>fiscal identification number<\/b><span style=\"font-weight: 400;\"> in Spain (<\/span><i><span style=\"font-weight: 400;\">N\u00famero de Identificaci\u00f3n Fiscal <\/span><\/i><span style=\"font-weight: 400;\">or<\/span><i><span style=\"font-weight: 400;\"> NIE<\/span><\/i><span style=\"font-weight: 400;\">).&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>What is the Director\u2019s Term of Office in an S.A. and an S.L.?<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Significant distinctions exist depending on whether the company is an S.L. or an S.A. Directors or board members of S.L.s are elected for an indefinite term, whereas S.A. directors have a maximum term of six years, with the possibility of later re-election.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In relation to the distinctive features of the Board of Directors in an S.A. and an S.L., if a company is managed by a <\/span><b>board of directors<\/b><span style=\"font-weight: 400;\">, a <\/span><b>minimum of three members<\/b><span style=\"font-weight: 400;\"> is required, with a <\/span><b>maximum of twelve for an S.L.<\/b><span style=\"font-weight: 400;\"> In the case of an <\/span><b>S.A<\/b><span style=\"font-weight: 400;\">., however, there is <\/span><b>no maximum limit<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n\n\n<p><b>The Board of Directors must elect a chairman and a secretary<\/b><span style=\"font-weight: 400;\">. Both individuals must sign the minutes that document the discussions and resolutions of the board of directors, which must be included in the minutes transcribed in the corporate ledger (according to Article 250 of the Corporate Enterprises Act).<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">The <\/span><b>chairman<\/b><span style=\"font-weight: 400;\"> is elected among the board members, as stated in Article 529 sexies of the LSC. The chairman is <\/span><b>responsible for the effective functioning of the board<\/b><span style=\"font-weight: 400;\"> and, in addition to the powers granted by law, the bylaws, or the board regulations, must summon and preside board meetings, preside over the general shareholders\u2019 meeting, ensure directors are sufficiently informed, and encourage debate and active participation of the members.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">The <\/span><b>secretary<\/b><span style=\"font-weight: 400;\">, on the other hand, is chosen by the board but is not required to be a board member. In addition to duties assigned by law, bylaws, or board regulations, the secretary must perform duties outlined in Article 529 octies of the LSC regarding the preservation of documentation, compliance with applicable rules, and assistance to the Chairman.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Additionally, the board of directors may optionally appoint a <\/span><b>managing director<\/b><span style=\"font-weight: 400;\"> from among its members, who may act individually on behalf of the company, unlike other directors who might be required to act jointly.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">It is important to note that certain decisions, such as the <\/span><b>election or determination of director remuneration or the approval of annual accounts,<\/b><span style=\"font-weight: 400;\"> must exclusively be made at the General Meeting of partners or shareholders. This implies that the resolution must be adopted by the shareholders&#8217; meeting, and no powers will be delegated to the administrative body. Observing the rights of shareholders, the law, the company&#8217;s bylaws, and the company&#8217;s interests are crucial limitations when making decisions.<\/span><\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-4\">\n<div class=\"wp-block-column is-layout-flow\">\n<p><a href=\"https:\/\/www.keplerkarst.com\/en\/team\/eduardo-frutos\/\"><strong>Eduardo Frutos<\/strong><br><\/a>Parter<br>E: <a href=\"mailto:efrutos@keplerkarst.com\">efrutos@keplerkarst.com<\/a><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow\"><\/div>\n<\/div>\n\n\n\n<p><strong>Access the Spanish version <a href=\"https:\/\/www.keplerkarst.com\/doing-business-in-spain-v-como-opera-gestiona-sa-sl\/\">here<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Who can manage an S.A. (Sociedad An\u00f3nima) and an S.L. (Sociedad Limitada)? Continuing with our ongoing series on \u201cDoing Business in Spain,\u201d we will delve deeper into investors\u2019 options when selecting the most suitable management structure for their companies in Spain.&nbsp; Specifically, we will focus on companies operating as either Sociedad An\u00f3nima (\u201cS.A.\u201d) or Sociedad [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":4768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":""},"categories":[840,893],"tags":[813,825,837,839,445,828,829,841,838,830],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Doing Business in Spain - V. How to set the management structure of corporations (Sociedades An\u00f3nimas or S.A.) and limited liability companies (Sociedad Limitada or S.L.)? | Kepler-Karst<\/title>\n<meta name=\"description\" content=\"Continuing with our ongoing series on \u201cDoing Business in Spain,\u201d we will delve deeper into investors\u2019 options.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.keplerkarst.com\/en\/doing-business-in-spain-v-how-management-structure-of-corporations-sa-sl\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Doing Business in Spain - V. 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