Italian 2027 Finance Draft Law (subject to Parliamentary debate and approval) – Key Tax Measures: Increase of middle tax band upper threshhold | Flat-tax Regime Forfettario threshold adjustments | Flat tax regime for employment income extended | New Exit Tax for individuals | "Bonus Casa" - real estate restructing relief extended to 2027 | Vehicle Tax Exemptions | Flat tax (Cedolare Secca) extended to commercial lettings | Fixed Rents for Under 36's | Introduction of Sugar and Plastic Taxes postponed to 1 July 2027 | Tax Credits For Cloud Software | Special bank and energy sector levies

Directors and Management

4.1 Appointment and Eligibility

Directors are appointed by shareholders and must meet basic eligibility criteria:

  • Be at least 18 years old
  • Hold a valid Italian tax code (codice fiscale)
  • Not be disqualified or bankrupt

Additional requirements apply to directors of companies regulated such as certain financial sector entities. Foreign nationals may serve as directors, subject to reciprocity rules. Residency is not required, but practical considerations (e.g., signing authority, tax status) may apply.

4.2 Board Structures

Italian companies may adopt different governance models:

  • Traditional Model – Board of Directors (CdA) and Board of Statutory Auditors (Collegio Sindacale)
  • Dualistic Model – Management Board and Supervisory Board
  • Monistic Model – Single board with internal audit committee

The traditional model is most common for S.r.l. and S.p.A. companies. S.r.l.s may also opt for sole director governance.

 

4.3 Duties and Liabilities

Directors owe fiduciary duties to the company, including:

  • Duty of care and diligence
  • Duty of loyalty and avoidance of conflicts
  • Duty to preserve capital and monitor solvency

Liability arises for breaches of duty, mismanagement, or failure to act. Directors may be held personally liable for damages to the company, shareholders, or creditors.

 

4.4 Management Powers and Delegation

The Board of Directors may delegate powers to individual directors (known as amministratori delegati, often translated as managing directors) or executive committees, subject to limits in the bylaws. Key decisions (e.g., mergers, capital increases) require shareholder approval. Day-to-day operations may be delegated, but ultimate responsibility remains with the board.

If you have any questions, feel free to contact us.

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