What are the organs of a Public Limited Company?

Companies, like most large entities, need to be divided into different specialized bodies in each of the management and administration functions of the company, in such a way that the joint result is the best possible. To know how they work and how they coordinate with each other, in .com we explain what are the organs of a Public Limited Company

General meeting of shareholders

It is an organ formed by all those shareholders or those who have enough shares to have a vote at the General Shareholders' Meeting. It is a variant and non-permanent organ, since the shares are traded between investors, so they are not always owned by the same people. Throughout the life of the company meetings will be held, where the shareholders will decide by majority on key issues of business management. There are two types of joints:

• Ordinary general meeting: it is held in the first six months after the close of an economic year, with the main purpose of approving and reviewing the accounts.
• Extraordinary meeting: it must be called by the administrators or by a member with the right to vote, in order to manage a specific matter.

The administration or Board of Directors

Within a limited company, the administration or Board of Directors is an executive body, which may be formed by one or several administrators, who are responsible for the management and representation of the corporation in its relations with other companies, public institutions, creditors or customers.

Likewise, they represent the company in case of acts contrary to the law, and in the case of causing damages against other natural or legal persons. They are also responsible for formulating and signing the annual accounts, the management report, and informing shareholders of all relevant details.

There should always be a president and a secretary, who do not have to be shareholders of the company.