Can an administrator be paid? | ScriptaLegal | ScriptaLegal
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Frequently asked questions > Company > Business Corporation > Can an administrator be paid?

Can an administrator be paid?

Yes. A director can generally receive remuneration for performing their duties. The remuneration and its terms must be determined in accordance with applicable laws, the articles of association, the company's regulations, and the decisions of authorized persons.

Depending on the duties performed and the company's needs, this remuneration may take the form of:

  • fees;
  • attendance tokens for participation in meetings;
  • of a salary, when the administrator also performs functions as an officer or employee;
  • other permitted benefits.

It is important to distinguish between a director's remuneration and dividends paid to shareholders. Remuneration is paid in consideration of duties or services rendered to the company, while dividends constitute a distribution of the company's profits to shareholders when declared in accordance with applicable rules.

In many SMEs, the same person is simultaneously a shareholder, director, and manager. Therefore, depending on the circumstances, they may receive remuneration for their directorship and dividends as a shareholder. However, these payment methods are subject to different legal, accounting, and tax rules.

Even when remunerated, the director remains bound to respect the duties and obligations imposed on him by law, including his duties of prudence, diligence, honesty and loyalty to the company.

In summary , a director can generally be compensated for the duties they perform. The form and terms of this compensation must comply with applicable rules and should not be confused with dividends paid to shareholders.

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