Is Company Directors’ Remuneration Tax deductible in Spain?The remuneration of directors of a Spanish company is deductible from the corporate income tax. However, the company’s bylaws must expressly contemplate the remunerated character of the post, and the remuneration scheme used to pay the director must be determined with certainty.Read more
Non-refundable Contributions by Shareholders in SpainNon-refundable contributions are an effective and immediate mechanism for injecting funds into a company. Its purpose may be to solve the company’s financial imbalance, provide liquidity to the company or undertake a specific project. Unlike capital increases, non-refundable contributions do not require formalization in a public deed, nor registration with the Commercial Registry.Read more
Informative Note: The new Insolvency Law (RDL 1/2020)In the following informative note, we address the Royal Legislative Decree 1/2020, of 5 May, that approves the redrafted text of the Insolvency Law, and revises its structure and key characteristics.Read more
How to determine the insolvency status of the company in the insolvency proceedingsThe state of insolvency obliges companies to apply for the insolvency proceedings. We analyse some facts that can help to identify this status, as well as the most commonly used accounting formulas to predict it: the acid test and the Altman Z-score.Read more
How to apply for bankruptcy in Spain: Basic aspects and DeadlinesThe Bankruptcy Law in Spain regulates the basic aspects and the deadlines within which companies should apply for bankruptcy when their situation does not allow them to fulfil their payment obligations on a regular basis.Read more
Express Insolvency Proceedings: an alternative for companies without assetsIn Spain, the Insolvency Law provides for the processing of express insolvency proceedings for those companies with no assets nor properties (or that are of a residual nature), with the corresponding savings in time and costs that ordinary insolvency proceedings would normally entail.Read more
MAC or Material Adverse Change ClausesWith widespread application in M&A transactions, MAC clauses are a very useful instrument since, as a rule, they allow the buyer to withdraw from a transaction in case of significant adverse changes that discourage the economic aim of the contract.Read more
Force Majeure and Rebus Sic Stantibus Clauses in the context of the COVID-19 CrisisForce majeure and rebus sic stantibus clauses are particularly relevant in the context of the COVID-19 health crisis. These legal instruments allow for a modification of the terms of contracts in extraordinary and unpredictable circumstances such as at present.Read more
Informative note on Insolvency Measures – RDL 16/2020Informative note on the Royal Decree-Law 16/2020, of 28th April, regarding procedural and organisational measures to deal with Covid-19, especially concerning measures on insolvency proceedings.Read more
Managerial positions within a company in Spain: functions and legal regimeWithin the organisation of a company there are several managerial positions. Materially they differ in terms of their functions, but also formally, since each of them is subject to a different legal system, with the consequences that derive from it (labour or commercial relationship).Read more
