When a company director receives remuneration for their duties as part of their job, it can be a valid expense for the company . However, it must be properly documented to avoid problems with the tax authorities or the commercial registry.
Remuneration
According to the law, the position of administrator is unpaid unless the statutes specify otherwise , in which case it must be mentioned in the statutes of our company.
Sign-off
Notwithstanding the foregoing, the General Shareholders' Meeting must ratify the maximum annual remuneration payable to the Board of Directors. This remuneration may remain in effect for several fiscal years; for example, the stipulated amount (the determined remuneration) will be maintained in subsequent fiscal years until the Meeting resolves to modify it.
Previous years
If you were paid for this service and there is no record that the Board approved the amount (even if the company provided the service), the Tax Agency could challenge this deduction. We advise you to convene a meeting to confirm the salaries already paid; this will reduce the potential repercussions in the event of an audit by the Tax Agency.
Contract
In the case of large companies, when a General Director is present, An agreement must be reached with the company in question, which requires the approval of two-thirds of the members of the Council. The person involved must not participate in the debate or cast a vote. The agreement must be recorded in the minutes of the meeting or, if confidentiality is an important factor, it must be disclosed and retained in the company's records, excluding its inclusion in the minute book. However, for it to have legal effects, your authorization must be officially recorded.
