Home  /  Services  /  Participation in management committees

Decide 03

Participation in management committees

We sit on your management committee to provide economic and financial analysis, monitoring of objectives and independent judgement, without replacing those who make the decisions.

AreaDecide
CoverageThroughout Spain
FrameworkLSC · LAC
FirmROAC no. S1604
In briefThis is a technical support service for management: on a regular basis we prepare and analyse economic, financial and operational information, take part in the management committee, measure the degree to which objectives are being met and propose measures to correct deviations, which are recorded in minutes. Decisions always rest with management and the board of directors. That is why we do not provide this service to entities we audit: art. 14.2 of the Spanish Audit Act (Law 22/2015) requires the auditor to refrain from taking part in the management or decision-making of the audited entity.

Reviewed by Controlaudit's audit team · Firm registered with the ROAC under no. S1604 · Updated 13 October 2026

What it involves

The management committee is the regular meeting at which senior management and area heads review how the company is doing and decide what to do. In many SMEs and family businesses this forum exists but lacks method: there is no reliable dashboard, figures arrive late and decisions are not followed up. Our service consists of bringing a professional from the firm onto the committee as a technical adviser, with three roles: preparing and explaining the information, providing an external, objective view, and ensuring that decisions are documented and reviewed.

At each meeting the company's economic and financial performance (sales, margins, costs, cash and borrowings) is monitored in detail, compared with the objectives set for each area, and deviations are analysed. The aim is to maximise profitability, cash flow and profit. Each meeting produces progress minutes setting out the company's position, the degree to which objectives have been achieved and the measures proposed to get back on course in areas with deviations, with owners and dates.

We bring the experience of an audit firm registered with Spain's Official Register of Statutory Auditors (ROAC): we know how to read financial statements, spot warning signs in time and translate them into decisions. But we do not replace management. We propose and analyse; the company decides and is accountable. This service builds on the dashboard we design under corporate strategy and control systems and on the budgetary control of the performance audit.

Who it is for

  • SMEs and family businesses whose managing director wants a regular second technical opinion without hiring a full-time finance director.
  • Growing companies that need to move from informal meetings to a committee with information, objectives and minutes.
  • Companies undergoing restructuring or facing cash pressures that must track a viability plan month by month.
  • Companies going through generational succession in which the new management wants support during the transition.
  • Companies backed by investors or family offices that require orderly monitoring of business performance.
  • Boards of directors that want to improve the quality of the information they receive from management.

Who decides. The management committee is not a corporate body: decisions are taken by the directors and, where applicable, by the executives to whom they delegate. Art. 225 of the Spanish Companies Act (LSC) requires directors to act with the diligence of an orderly businessperson, devote adequate time and take the measures necessary for the proper management and control of the company, and recognises their right and duty to obtain the information they need. Art. 249 bis LSC prevents the board from delegating, among other things, the setting of general policies and strategies and the supervision of executives. An external adviser provides information and analysis but does not take on those responsibilities.

Warning signs the committee must watch. A good dashboard detects in time situations with legal consequences, for example losses that reduce equity to below half of the share capital, a ground for dissolution under art. 363.1.e) LSC, or actual insolvency, which requires filing for insolvency proceedings within two months of becoming aware of it (art. 5.1 of the Spanish Consolidated Insolvency Act).

Independence. Art. 14.2 of the Spanish Audit Act (Law 22/2015) requires statutory auditors and audit firms, and anyone who can influence the outcome of the audit, to refrain from taking part in any way in the management or decision-making of the audited entity. In addition, art. 16.1.a).1.º treats as incompatible being an executive of the audited entity or acting as head of its finance function or of supervision or internal control. That is why, before accepting the engagement, we check that we do not audit the company or any entity with which it has a control relationship, and we do not provide this service to our audit clients.

SituationRuleWhat it means
Directors' duty of careArt. 225 LSCThey must take measures for proper management and control and obtain adequate information
General policies and strategies in companies with a boardArt. 249 bis LSCNon-delegable power of the board; the external adviser does not decide
Equity below half of the share capitalArt. 363.1.e) LSCGround for dissolution, unless the capital is increased or reduced or insolvency proceedings are required
Actual insolvencyArt. 5.1 TRLC (RDLeg 1/2020)Filing for insolvency within the following two months
The company is an audit client of the firmArts. 14.2 and 16.1.a).1.º Law 22/2015The auditor cannot take part in management or decision-making: service not available

What is included

Preparing the information

Before each committee meeting we review the monthly or quarterly close, the profit and loss account by area, cash and borrowings, and prepare a short report on significant variances.

Dashboard

We design or refine the key indicators (sales, margin, overheads, average collection and payment periods, forecast cash) so that the committee always works with the same metrics.

Attending meetings

A professional from the firm takes part in the committee, explains the figures, raises questions and puts forward alternatives, leaving the decision to management.

Progress minutes

We draft the minutes setting out the company's position, the degree to which objectives have been achieved, deviations and proposed measures, with owners and dates, for review at the next meeting.

Budget and plan monitoring

We compare actual figures with the budget and monitor the strategic, operational or viability plans approved by the company.

Early warnings

We flag risk indicators in good time: deteriorating margins, liquidity pressures, breaches of financial covenants or an imbalance in equity.

How we work

  1. 01

    Independence and scope analysis

    We check that there are no incompatibilities and agree with management the objectives of the service, the areas covered and the frequency. Indicative timing: 1-2 weeks.

  2. 02

    Diagnosis of the available information

    We review the accounting system, the reports already produced and their reliability, and propose the dashboard. Indicative timing: 2-4 weeks.

  3. 03

    Setting objectives

    Objectives by area for the year are defined with management, based on the budget or business plan.

  4. 04

    Regular committee meetings

    Usually monthly or quarterly, depending on the company's size and situation; in restructurings, more frequent meetings may be advisable. Each meeting ends with its minutes.

  5. 05

    Annual review

    At year-end we assess overall achievement, adjust the indicators and set the objectives for the following year.

Documentation and deliverables

What we will ask you for

  • Periodic trial balances and profit and loss accounts
  • Annual budget or business plan
  • Cash flow forecasts and bank positions
  • Details of credit facilities, loans and financial commitments
  • Sales reports by customer, product or channel
  • Organisation chart and the person responsible for each area
  • Minutes or decisions of previous committee meetings, if any
  • Current viability or restructuring plan, where applicable

What you will receive

  • Dashboard with key indicators by area
  • Economic and financial report before each committee meeting
  • Progress minutes for each meeting with proposed measures
  • Annual report on the monitoring of objectives

Frequently asked questions

A finance director is part of the organisation and takes management decisions. Our service is external and periodic: we provide analysis, method and an independent view at the key meetings, without taking on executive functions. It is a common option for companies that cannot yet justify a full-time position.

Most commonly, a monthly or quarterly meeting linked to the accounting close for the period. In situations of cash pressure or restructuring, more frequent meetings may be advisable for a time. The frequency is agreed at the outset and reviewed every year.

Always the company’s management and board of directors. We propose measures, analyse their effects and record them in the minutes, but the decision and the responsibility lie with the directors, in accordance with the Spanish Companies Act.

No. The Spanish Audit Act requires the auditor to refrain from taking part in any way in the management or decision-making of the audited entity. If we are your auditors, we will suggest other compatible services or advise you to find another adviser for the committee.

The company’s economic and financial position, the degree to which each area’s objectives have been achieved, the deviations identified and the measures proposed to correct them, with an owner and a date. At the next meeting, what has been done is reviewed.

It is advisable. If the monthly closes are not reliable, the first step of the service is to put them in order and set a closing calendar, because a committee working with out-of-date or incorrect figures makes worse decisions.

Yes. Regular monitoring of cash, borrowings and equity makes it possible to anticipate situations such as losses that reduce equity to below half of the share capital, or difficulties in meeting payments, which have legal consequences and must be addressed as soon as possible.

Request your proposal for participation in management committees

Tell us about your situation and one of the firm’s auditors will contact you.