Remuneration of corporate directors in the Capital Companies Act

Luis Sánchez, Director of the Commercial Department of Medina Cuadros In Granada, he participated in a round table discussion Law school of the Andalusian city, organized by the Professional Association of the Judiciary (APM), where he analyzed in depth the remuneration of Executive Directors before the Sentence of the Supreme Court of February 26, 2018.

This "controversy" Sentence, as developed Luis Sánchez At the beginning of his speech: "he considered, contrary to the majority doctrine, that the remuneration of the Managing Directors should be subject, cumulatively, to the requirements demanded of the directors, in their capacity as such“, collected all of this in the article 217 of the Capital Companies Act.

Luis Sánchez He continued his presentation by explaining that "to date, it has been maintained that the Managing Directors or Executives they just had to stick to what regulated in article 249 LSC, that is, the signing of a contract between the Company and the Managing Director or Executive, with a reinforced majority of 2/3, the affected party abstaining from participating in the debate and approval thereof, and the minutes must record the copy of said contract.”

He Director of Commercial from the Granada office, detailed in this round table, that the Supreme Court, with the Judgment of February 26, 2018, considers that together with these requirements, the following are also required: administrator, in his condition of such, "so you should have your statutory reflection in the methods and bases of remuneration, among which this precept or any other that may be accepted by the General Meeting”.

“In such a way that without the statutory provision and later approval of the General Meeting of the salary caps, the remuneration of the Counselor, with the consequences that this entails, in particular, those of a fiscal nature.”

This forum served to present the detailed vision of the different legal professionals regarding the STS of February 26, 2018, debating new and controversial legal issues. In addition to Luis Sánchez, Director of Mercantil de Medina Cuadros in Granada; the panel members were: Maria Jose Fernandez Alcala, Magistrate Judge of Territorial Assignment of the Commercial Court of Granada; Cristina Palma López, Commercial Registrar of Granada, and, Antonio Juan García Amezcua, Notary of Granada.

The presentation was of great interest to the audience that gathered at the Auditorium of the Faculty of Law of GranadaAmong the attendees were professionals from all areas of law: judges, registrars, notaries, lawyers, and also university students.

Presentation by Luis Sánchez on "The remuneration of corporate directors in the Capital Companies Act"