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The Role of the Mediator in Extrajudicial Payment Agreements in Spain (EPA)

Per the European Code of Conduct for Mediators and the Spanish Mediation in Civil and Commercial Matters Act (LM), a mediator must maintain confidentiality regarding information and documents obtained during mediation, with the European Code of Conduct extending this duty to the mediation’s existence (point 4). The LM specifically holds the mediator responsible for any breach of this confidentiality obligation, highlighting its importance.

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Universal Board Meetings in the Spanish Company

The Universal General Board Meeting remains valid even if notice requirements are not met, as stated in Article 178 of the Capital Companies Act. In this unique meeting, rules for notice are unnecessary, as unanimous agreement and the presence of all members ensure the respect of attendance, information, and voting rights.

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Shareholders’ Attendance at General Meetings in Spain

According to Article 179 of the Companies Act, shareholders of limited liability companies (“S.L.”) may attend the general meeting. The bylaws of limited liability companies cannot establish a minimum number of represented shares to attend general meetings.

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Common Measures for Collective Agreements in Spain

Property executions necessary for a business activity cease for up to four months from the debtor’s initial communication with the court regarding negotiations with creditors. This pause aims to facilitate successful agreements and prevent the accumulation of executions by uncooperative creditors.

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Ordinary and Extraordinary Meeting in the Spanish Company

In a Spanish company, general board meetings can be ordinary or extraordinary based on the topics. A meeting is universal if any issue is valid without prior notice, with all shareholders present or represented and unanimous agreement. It can be held anywhere, nationally or internationally.

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Simplification of the Rights of Shareholders in Spain

On June 23, the Spanish Legal Bulletin (BOE) released Law 1/2012, amending reporting and documentation obligations for company mergers and divisions. These changes, affecting the Capital Companies Act, notably highlight a shareholder’s right to withdraw if a company opts not to distribute profits.

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