Company law and corporate governance refer to the appropriate company management and control structures as well as the rules which regulate the power relation between owner, administration board, etc. Its function is to protect the interests of the company and its shareholders and to eliminate, mitigate or resolve any conflict.
The articles of association of limited liability companies are the rules governing its functioning and structure. When, over the years, the wording of these internal rules becomes obsolete, it is necessary to update or recast the articles of association.
The Create and Grow Law is a boost for small and medium-sized companies (SMEs) in Spain, designed to remove obstacles to economic activities, reduce late payment practices in business transactions, and provide financial support for business growth.
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.
With the end of the chaos of the world pandemic that disrupted the world’s economy, the Spanish government has declared suspensions of dissolution through Law Article 13 3/2020, 18th September. Our lawyer AGF explains it in the following article.
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.
The Spanish Companies Act stipulates some actions to protect the rights of minority shareholders to ensure the continuity of the company.
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.