The concept of loyalty shares was heavily involved in the subsequent changes to the reform of the Spanish Companies Act (Ley de Sociedades de Capital). Its introduction aims to reinforce the attractiveness of the corporate regime in Spain to investors.
The lack of specific regulation on labour matters does not exempt directors from liability if they occur in labour and social security infringements.
It was necessary to create a specific regulatory framework for startups in Spain. They represent the basis of the new digital economy, create highly qualified jobs and have growth potential.
The capital increase through credit compensation reduces the risk of insolvency and avoids the declaration of insolvency proceedings, thus providing a solution for companies with high liabilities.
The possibility of designating a Foreign Director is one of the most pertinent questions for foreign individuals and companies intending to develop a business via a capital company in Spain.
Law 5/2021, dated 12 April, which amends the Revised Text of the Spanish Capital Companies Act, introduces the possibility of holding general shareholders’ meetings exclusively through telematic means.
The growing relevance of companies, their partners, and administrators as economic actors has also introduced the proliferation of corporate crimes such as false accounting, abusive and harmful agreements, or the denial of corporate rights.
At the end of the fiscal year, the administrators of the company are responsible for preparing the annual accounts, convene an ordinary general meeting to approve them and deposit the accounts at the Commercial Registry.
On 24th May 2019 was published the draft law amending the Corporate Enterprises Act and other financial rules in Spain. Its objective is to adapt them to the European legislation (Directive (EU) 2017/828) in terms of promoting the long-term involvement of shareholders in listed companies.
Although the duties of company directors and senior managers may overlap, their rights and obligations to the company differ considerably. While the former is subject to commercial legislation, the latter is subject to labour law.