Company Management in Portugal
Company Management in PortugalUpdated on Friday 14th July 2017
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Company managers and directors in Portugal have a series of duties and obligations and must follow the rules set forth by the Companies Act. According to the type of company in Portugal, they will also bear a certain degree of liability.
Our team of lawyers in Portugal can help you understand the laws related to company management in Portugal and the extent of liability for the founders and the directors of that legal entity.
General company management principles in Portugal
The requirements for company management in Portugal differ according to the chosen type of company. Thus, private limited companies will generally be subject to less stringent management and control laws, compared to public limited companies. The difference is owed to the fact that the latter is open to public investment.
The members of a Board of Directors in a public limited company in Portugal are appointed for a predetermined period (as stipulated in the Memorandum), but cannot occupy this position for more than four calendar years.
The directors and managers are appointed if they comply with the requirements for non-competition and if they do not have a conflict of interest.
Company managers in Portugal are appointed directly, as stipulated in the Memorandum, or are elected by a Shareholder’s Resolution. The Articles of Association may provide for a different appointment method. Managers can resign or they can be removed from office.
One of our lawyers in Portugal can give you complete details on the appointment, resignation or dismissal of company managers.
The duties and liabilities of company directors in Portugal
The company managers and directors in Portugal have a duty of care and loyalty toward the company. They should act in the best interest of the company, consider the long term goals of the corporation and mind the sustainability of the company, its employees, clients but also its creditors.
Breaches of their contractual duties result in civil liability. The director may be personally liable for the debts of the company, should these damages be caused by his/her actions. One of the experts at our law firm in Portugal can give you complete details on director’s liability.
Contact us for more information on corporate governance in Portugal.