Controlled remuneration in state-owned companies, or those assisted by the state - giving them grant-in-aids -, is a matter that raises a certain sensibility. Therefore, there’s a need to combine - particularly in the corporate scope - the concept of transparency and good corporate governance. This sensitivity, which is increasingly demanded within private companies, shall be even more pronounced within the public business sector. The worldwide-known concept of Corporate Governance has been developing an essential leading role for years, which is directly linked to the desire of having companies with better functioning. In this sense, and as an example, the most recent expression of this can be found in the Law of Spain, exclusively with regard to the private sector, in the Act 21/2014, of 3rd December, by which the Spanish Capital Company Act is consolidated for the amelioration of corporate governance. Among the introduced amends, the most highlighted ones are notably those affecting the governing body. For instance, the duties of diligence and loyalty are specified and there’s a more detailed regulation of the liability regime of administration members regarding management, organization and functioning of the board of directors, enhancing its supervising role in terms of performance of directors with executive functions and, more specifically, establishing stricter controls on remuneration of senior official positions.
How to cite this paperOrtiz del Valle, Mª Carmen (2019): Practical applicability of the delegation of powers in capitalcompanies (an approach to the questions raised in Spanish Law. Spanish Journal of Legislative Studies. (1), p1-27.
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