Spanish SMEs at the crossroads: where do we go from here?Small and medium-sized enterprises (SMEs) are well known for playing a major role in all economies, being the key generators of employment and income. As a result, SMEs are crucial …Read more
Long-Awaited Amendment to Insolvency Legislation in Spain: Is it Sufficient?The Law introduces positive changes to financing agreements and restructuring but fails to address critical issues. Inadequate resources for the Justice system and the absence of solutions for individual debt problems persist. Additionally, the underutilization of the restructuring procedure contributes to low satisfaction among ordinary creditors.Read more
Creditors’ compulsory liquidation proceedings in SpainIn Spain, creditors’ compulsory liquidation proceedings differ from creditors’ voluntary liquidation, as they are initiated by a legitimate creditor following Article 3.1 of the Law 22/2003 (the Insolvency Act).Read more
Procedures in the Civil and Contentious-Administrative Systems in SpainThis article contains a summary of the principal measures introduced by the Procedural Streamlining Measures Bill in Spain, which is intended to improve, streamline and speed up current procedures in the spanish Civil and Contentious Administrative Systems in Spain.Read more
Duties and Liabilities of Directors in Insolvency Proceedings in SpainThe current Spanish Insolvency Law raises directors’ liability levels. Hence, directors must not only manage the company but also address legal aspects to prevent liability in insolvency proceedings.Read more
Modification of the bankruptcy proceedings in SpainThe Council of Ministers has endorsed a draft amending Spain’s insolvency proceedings law, previously modified by Royal Decree 3/2009. The amendments, introduced to expedite and reduce costs, aim to position insolvency proceedings as a tool not only for winding up but also for attempting to save the company.Read more
Features of the Enforcement of Bank Guarantees in SpainThe strict reading of Article 97.2 may harm a creditor with a debtor-specific guarantee, as it implies automatic extinguishment without additional criteria. Unfortunately, the current wording doesn’t support a discretionary judge interpretation, posing a risk of guarantee extinguishment without due consideration.Read more
Manager’s Liability within the Framework of Bankruptcy Proceedings in SpainThe recent Spanish Bankruptcy Law expands the examination of company managers’ liability, supplementing existing provisions in the Public Limited Company and Limited Liability Company Laws, as well as the Criminal Code, within the context of corporate crime. It introduces a classification section in bankruptcy proceedings where the judge assesses the involvement of company managers in the company’s bankruptcy situation.Read more
Impact of company abandonment in Spain on the system of managerial liabilityThe Spanish legal system offers creditor protections for companies that cease commercial operations but remain inactive, failing to undergo the necessary dissolution and liquidation processes. Typically insolvent, these companies neglect corporate debts and obligations by discontinuing trading, abandoning the business premises, not filing annual accounts with the Commercial Registry, neglecting tax payments, and failing to fulfill other corporate obligations mandated by law.Read more
Spanish Insolvency Law: the responsibility of directors in a situation of insolvencySpain’s Insolvency Law safeguards creditors in instances of director misconduct or negligence during company insolvency, ensuring confidence in the legal framework’s protection for creditors.Read more