Functions and responsibilities of the administrator of a company

Social Security registration. Administrator's contribution and remuneration

The administrators of a company may or may not be members of the same. Depending on whether or not they have effective, direct or indirect control of the company, we can find different frameworks within the Social Security system.

It is assumed, unless proven otherwise, that the administrator has effective control of the company for which he provides his services when any of the following circumstances exist:

• That at least half of the capital is distributed among partners with whom it coexists and with whom it is united by conjugal bond or kinship by consanguinity, affinity or adoption, up to the second degree.
• That its participation in the share capital is equal to or greater than one-third of the share capital or one-fourth, if it has assigned functions of direction and management.

In this sense, it should be remembered that, although the above circumstances do not exist, the Administration can prove, by any means of proof, that the administrator has effective control of the company.

Framing in the Social Security system

  It will be in the RGSS excluding unemployment protection and Fogasa when it is part of the administrative body or is an administrator and does not have effective, direct or indirect control of the company.

He will be in the RETA when he is part of the administrative body or is an administrator and has effective control, direct or indirect, of the company.

Remuneration

The directors of capital companies shall hold office for free, unless the company's articles of association stipulate otherwise, and establish a remuneration system in return for this function. If a remuneration system is established in the articles of association, only the general meeting of members may modify it in its maximum amount.

Obligations and responsibilities of administrators for debts with Social Security

  The obligations of the administrators are of a different nature: fiscal, social security, financial, commercial and, in general, economic. There is a maxim that must be met by every administrator which is to act in an orderly, exemplary manner and in accordance with the rules of good faith and the best interest of society. In this sense, it means achieving the purposes for which he has been appointed and avoiding harmful situations.

The responsibility of the administrators, as a general rule, extends to all their personal assets , in any of the areas of their obligations, whether civil, criminal, commercial, tax or labor.

The directors of capital companies will be liable, if they have not fulfilled their legal obligations to dissolve or file for bankruptcy, to the Social Security Administration for debts of companies that cease their activity, leaving outstanding debts to Social Security.

These public bodies, when they see that they cannot collect credit rights, will initiate the corresponding derivation of responsibility file. In the event of filing for bankruptcy, the debts are subject to the provisions of the Bankruptcy Law itself, and the proceedings for the derivation of liability to the administrators are suspended.

If you need more information do not hesitate to contact DATA and SERVICES.