Position of Director in Spain: Duration and End-Date
Before dealing with the issue of the duration of the director position in a company, remember that in Spain, and according to the Corporation Law (LSC), the company’s board is the unit in charge of naming the director. This appointment must be open to the public, formalized by a publically-available writing, and registered in the Commercial Registry.
Duration of the Director position in a Limited Liability Company
In a limited liability company, the position of director is often undefined, although it is possible to establish the duration of the term of the position through by-laws.
Duration of the Director position in a Corporation
In the case of a corporation, the position is performed for a period of time established by the by-laws. In no situation will it last for more than six years.
Duration of a position as Director according to the by-laws of a company
In the situation where the by-laws establish a definitive period for the performance of the position, it must be established in a clear and concrete form for all the directors and applied equally.
Although the general rule is that a director can be re-elected various times, the by-laws can limit the re-election of the same person and can even exclude their re-election completely.
We must be careful with these limitations since companies with few members can have difficulty in naming a director, especially if there is a membership requirement to occupy this position.
Acceptance and cessation of the position as Director of a company
The director must expressly accept the position and can end it by his or her own resignation, through an agreement of the Board, or when the position expires at the designated time.
End-date of the position of Director of a company
The end-date of the position takes place once the term established by the by-laws has passed, although it must be established when the stated end-date takes effect.
As a general rule, the appointment of a director will expire when the term has ended and the general meeting has taken place or when the term has passed for the execution of the meeting that must decide the approval of the accounts from the previous fiscal year.
This article is not considered as legal advice