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The rooted director

 

The rooted director

Practical experience shows that many cultural barriers between Spain and other countries make it more difficult to manage the Spanish subsidiaries of international companies.

Sometimes the director of a Spanish subsidiary thinks he has absolute power and the company is his personal property. It does not make any difference whether the director is a foreigner or a Spaniard.

This phenomenon is described by us as the “rooted director”.

A consolidation of the financial bookkeeping at an international group level can not always help to avoid this situation.

Some typical characteristics of the rooted director are:

1. Private expenses are increasingly made on the account of the subsidiary (gasoline, restaurants, taxes, etc.);

2. Family members are put on the pay-roll and sometimes work in the subsidiary;

3. The director surrounds himself with local advisers like external bookkeepers, lawyers, etc.;

4. The director starts to engage in parallel and other activities which very often compete with the business of the subsidiary.

Because the rooted director can do as he pleases, it is not easy to prove his unlawful behaviour when dismissing him. He can hide evidence.

De Haan & Mulder has a lot of experience in these kinds of cases and we also use experienced accountants, detectives, notaries which can provide needed assistance.

 
     
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