The promissory note is a document of promise to pay a determined amount of money on a given day which is very common in Spain. It is a written document issued by the debtor — an individual, a company, the State — and it may be payable to the bearer or endorsable, that is to say, it may be transferred to a third party.
French and Spanish law have much in common for historical reasons: their common features, their forming part of the European Union, and the latter trends to harmonize the Member States’ legislation. However, there exists an issue for investors: not only may French and Spanish proceedings differ on certain details, but also the legal vocabulary used […]
The inherent confidentiality duty in the role of the mediator According to both the European Code of Conduct for Mediators and the Spanish Mediation in Civil and Commercial Matters Act (LM), a mediator must respect the confidentiality of information and documents obtained during a mediation proceeding. The European Code of Conduct extends this confidentiality duty […]
In general, Spanish courts are protecting those purchasers of preferred stock who do not meet the profile of a suitable investor for these products nor those who are sufficiently informed about the characteristics and risks. At the same time, Spanish courts are also ordering those financial entities to repay the invested amounts. It is common […]
Eurofenix Spring Edition, Enforcement of bank guarantees. April 2010 What happens if the beneficiary of a bank guarantee or other surety decides to enforce it against a payment default by a debtor who has been declared insolvent? This is a crucial question not only for the beneficiary of the guarantee but also the granter thereof […]
The still recent Spanish Bankruptcy Law more fully examines the legal system regarding company managers’ liability.This new liability system serves to supplement the system already provided for in the Public Limited Company and Limited Liability Company Laws, as well as the Criminal Code, within the framework of corporate crime. In effect, one of the areas […]
The Insolvency Law of Spain protects creditors in case of misconduct or negligence by directors (administradores) of a company in insolvency; such a disposition is specifically useful as it is of utmost importance for there to be confidence in the protection that the economic legal framework offers to creditors. When there is a company in […]
PDF Eurofenix Winter Edition 2009 Concept and legal prohibition In recent years so-called leveraged buy-outs (LBO) have been very frequent in Spain. These operations are characterised by being acquisitions of a majority percentage of the share capital of a target company, this acquisition being financed via loans obtained from a third party which are guaranteed with […]