What is the governing body in a company?

What is the governing body in a company?

In a company, the administrative body is the main entity in charge of managing and directing the activities. It has the responsibility of carrying out all those acts that are related to the corporate purpose of the company, which is necessarily indicated in its bylaws.

However, said body can manifest itself in different ways depending on how the statutes are made:

• Limited Company with Sole Administrator: In this modality, the company is managed by a single person, who makes all the decisions and assumes responsibility for management. The sole administrator can be a partner or a person outside the company.
• Limited Company with Several Joint or Joint and Several Administrators: In this type of company, there are multiple administrators who act jointly and severally or jointly. Decisions are made by unanimous agreement or by majority, as established in the statutes.
• Limited Company with Board of Directors: In this case, the administrative body is a Board of Directors made up of various members. The Board makes decisions by majority, and its members can be partners or people from outside the company.
• Limited Company without a Defined Management Body: In this situation, decisions are made jointly by a Management Body determined by agreement at the General Meeting. There is no formal structure of such a body established in the statutes. Usually, the management and decision-making functions fall on the partners in this type of Limited Company.

Related concepts

• Statutes of a Limited Company with Sole Administrator.
• Statutes of a Limited Company without a defined Administrative Body.
• Statutes of a Limited Company with Joint or Co-Administrators.
• Statutes of a Limited Company with Board of Directors.
• Joint and Joint and several liability, how are they different?