When setting up a business in Madeira, you’ll need to appoint a company director in Portugal. This role ensures smooth operations and legal compliance. Understanding appointment rules, term lengths, and associated duties helps build a firm legal foundation for your Madeira company.
Appointment and Term of Office
Directors are formally appointed (and removed) by shareholders, in line with the company’s articles and Portuguese law. In private limited companies (Lda.), directors typically serve indefinitely, unless the articles specify a set term.
In public limited companies (S.A.), directors serve for a maximum of four calendar years, unless the bylaws state a shorter term.
Crucially, even after their term ends, directors remain in office until successors are appointed.
Reappointment and Continuity
Directors may be reappointed for further terms, provided there are no restrictions in the articles of association. This flexibility supports business continuity, a valuable asset for Madeira-based ventures seeking leadership stability while staying fully compliant.
Resignation and Removal Procedures
Directors can resign by giving formal written notice. In Lda.s, resignation becomes effective eight days after notice, while in S.A.s, it takes effect at the end of the following month. Shareholders can also remove directors at any time.
Removal without just cause may require compensation, typically up to the value of their remaining term.
Legal Compliance and Acceptance
Portuguese law mandates that every company director in Portugal formally accepts their appointment and declares no legal impediments. If the director is a legal entity, it must designate a natural person to represent it, ensuring accountability and compliance.
Why Directors Matter for Madeira Companies
Madeira offers compelling benefits for investors, including tax advantages and access to the International Business Centre. Yet these advantages rest on strict adherence to Portuguese corporate law, especially around director roles.
Ensuring correct appointment, mandate terms, and formal acceptance helps safeguard both compliance and the credibility that fuels long-term success.
This article is provided for informational purposes only and does not constitute legal or tax advice. Regulations on company management in Portugal, including rules applicable to directors, may change over time and should always be interpreted in light of the latest legislation. Before making any decision regarding the appointment of a company director in Portugal or the incorporation of a business in Madeira, investors should seek professional advice tailored to their specific circumstances.
For comprehensive support, MCS – Madeira Corporate Services offers specialized assistance with company incorporation, corporate governance, and ongoing compliance in Portugal and Madeira. Our experienced legal and tax consultants ensure your business meets every legal requirement while taking full advantage of Madeira’s international business environment.
The founding of Madeira Corporate Services dates back to 1996. MCS started as a corporate service provider in the Madeira International Business Center and rapidly became a leading management company… Read more
