Directors of a Portuguese Company
Directors of a Portuguese CompanyUpdated on Friday 04th August 2017
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Company directors in Portugal have a series of duties and responsibilities toward the good functioning of the company and the working conditions of their employees. The Company Law is a source of legal provisions for company managers and directors.
One of our attorneys in Portugal can answer your specific questions on this matter and detail the legal provisions that concern the directors of a Portuguese company.
The director's duties in Portugal
Company directors must observe the Company Law, as well as the internal rules and regulations of the company they are running, as stated in the Articles of Incorporation.
The director's duty of care refers to his/her role in pursuing the best interest of the company and exercising the due diligence and care needed for the proper management and control of the operations.
The duty of loyalty refers to putting the interests of the company above their own and not entering into any conflicts of interest. The company director in Portugal should remain loyal to his company. A breach of this duty would include diverting corporate assets or using confidential information for personal gain.
One of our lawyers in Portugal can give you more details on the fiduciary duties of company directors.
The director's liabilities in Portugal
Company directors in Portugal are liable towards the company, towards the company creditors and they also have a certain degree of civil liability. When the director breaches his legal or contractual duties he or she may be liable with his own assets.
Company managers and directors are liable towards the company if their actions or omissions cause damages to the company. This does not apply if they can prove that they acted in good faith. A lawyer in Portugal can help you in cases that involve corporate litigation.
The company director may become liable towards the creditors when the company's assets are not enough to satisfy the claims of the said creditors. The Portuguese Companies Code contains specific information about the legal protection of company creditors.
The experts at our law firm in Portugal can help you with more information on the responsibilities, remuneration, appointment, and resignation of company directors. You can contact us for more information on corporate governance.