Company administrators are responsible for managing and making the daily decisions of an organization , taking care of its representation. They can have the figure of natural or legal person.
That is, the administrator of a society can be an individual or institution. Thus, it acts in the name of a company, mainly in everyday legal processes, for example, by signing labor contracts.
One of the strictly necessary steps when establishing a commercial company is the appointment in the deed of the administrator or of the administrators with whom the company will have.
Types of company administrators
There are different modalities by which this company administration task can be carried out:
- Sole administrator: This is a single designated natural or legal person.
- Joint and severaladministrators : Joint and several administrators act independently in managing and representing the company. On the other hand, the joint associations require consensual actions so that their decisions can be valid and carried out.
- Board of Directors: Group with at least three members.
In startups or smaller companies, the figure of the administrator is usually identified with that of the CEO or executive director .
Requirements to be the administrator of a company
In order to become a company administrator there are certain requirements, such as being natural or legal persons. On the other hand, there is no need for the administrator to be a shareholder of the company he is representing.
Another important point is that it is not possible to act as a company administrator in the case of a minority (except for legally emancipated minors), or for incapacitation or disqualification under the law.
It should also be noted that the duration of the position of administrator is usually subject to the type of company . That is, it depends on the provisions that are marked in the statutes of each particular company.
The firm may or may not establish a specific period of time for this purpose. For example, in limited liability companies, administrators usually have their role assigned for an indefinite term.
Functions of the administrator of a company
The functions of the administrator are usually established in the bylaws of each company. However, there are several regulations in this regard. Thus, laws usually have a series of basic duties such as the following:
- Act diligently, loyally defending the interests of society.
- Do not continue looking for your own benefit, taking advantage of a position of advantage.
- Obligation to inform the partners about possible situations of conflict of interest for the company.
- Keep secret of all confidential information related to society, even when leaving the organization.
There are many other tasks assigned to the figure of the administrators most focused on the day to day of a company, such as the call of the General Meeting of Shareholders. They can even promote a hypothetical dissolution of society in certain legal situations, among many others.
In cases where company administrators do not fulfill their mission correctly, they may have to respond personally and with their assets to the company and its partners. This, proportionally to the damages caused in their activity.