An appointment of agents is required for the creation of an LLC. A compensation can be provided. Discover our fact sheet on the remuneration of the managers of a SARL : how to determine it? What are the components?
Composition of the remuneration of the SARL manager
The SARL manager has the right to compensation for the tasks performed or may perform them on a voluntary basis. No minimum compensation is required by law. There remuneration of the manager of SARL may be fixed or variable, and may also receive benefits in kind. The principles applicable to the manager concerning his compensation are different from those provided for employees under an employment contract.
Abuse of majority may be sanctioned if the manager takes advantage of his majority position to pay himself compensation exceeding the limit and not in accordance with the corporate interest.
1. Fixed remuneration
This option entitles you to a predefined salary which is paid according to the frequency decided upon.
The major disadvantage of this option is that the salary is not linked to the performance of the company. Moreover, if it is modified, a decision of the partners is necessary. This type of compensation is more frequently observed when the manager is a minority or non-shareholder within the SARL.
2. Variable compensation
The variable remuneration makes it possible to interest the manager in the evolution of the company: percentage of the turnover, profit-sharing on the gross margin, bonus according to the profits or any other indicator.
The partners determine the most appropriate indicator to motivate the manager of the SARL.
3. Benefits in kind
The manager may receive benefits in kind, which correspond to all the goods offered free of charge by the company for personal purposes: accommodation, vehicle made available, mobile phone, etc.
Regulation of the remuneration of the manager of an LLC
Le amount of compensation for the SARL manager is determined :
- either in the statutes directly,
- or by collective decision of the partners.
In practice, the salary is rarely fixed in the statutes because they would have to be modified with each change.
When the collective decision is taken by an ordinary general meeting, it is ratified by one or more partners representing the majority of the company's shares, unless there is a contrary statutory clause.
1. Can the managing partner vote on his compensation?
The SARL manager can express his views on the amount of his remuneration, even if he is also the majority shareholder. This is a decision that does not fall within the scope of regulated agreements.
2. Difficulties related to setting the manager's compensation
In the event of a dispute over the manager's salary, the judge may decide to limit it. The partners will have to prove that the remuneration is exaggerated and harmful to the SARL.
If the partners of the SARL, for any reason whatsoever, refuse to rule on the remuneration awarded to the manager, the latter may take legal action to determine it.
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