Changes for shareholders after the amendment of the Corporate Enterprises Act
On 24th May 2019 was published the draft law amending the Corporate Enterprises Act and other financial rules in Spain. Its objective is to adapt them to the European legislation (Directive (EU) 2017/828) in terms of promoting the long-term involvement of shareholders in listed companies.
Look-through chart regarding temporary layoff procedures in Spain or ERTE
Force Majeure ERTE are regulated in arts. 47.3 and 51.7 ET, art. 31 and ff of Royal Decree 1483/2012 and arts. 22 and 24 to 28 of Royal Decree Law 8/020. ERTE for objective causes linked to COVID-19 are regulated in art. 47 ET, arts. 16 and ff of Royal Decree 1483/2012 and arts.23 and 25 to 28 of Royal Decree-Law 8/2020.
MAC or Material Adverse Change Clauses
With 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.
Royal Decree-Law 18/2020 of 12 May on social measures in defence of employment
Information note on Royal Decree-Law 18/2020 (RDL 18/2020) of 12 May, on social measures in defence of employment, which introduces modifications to employment regulation records.
The termination of contracts with reciprocal obligations in bankruptcy proceedings
Articles 61 and following of Law 22/2003 provide for the effects of the termination of contracts in the context of bankruptcy proceedings in Spain. The law grants different mechanisms to the parties to guarantee the survival of the bankrupt company and the right of debt recovery of its creditors.
Force Majeure and Rebus Sic Stantibus Clauses in the context of the COVID-19 Crisis
Force 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.
Liquidity Solutions for Companies in Spain as a result of the State of Alarm
Following the decree of the State of Alarm, the Spanish Government has approved a package of measures on labour Law (by easing the suspension of employment contracts) and insolvency Law, in order that companies can better cope with their lack of liquidity.
Moratorium on renting commercial premises in Spain, the RDL 15/2020
We analyse the requirements to apply the moratorium on the payment of rent on commercial premises, according to the provisions of RDL 15/2020 in the context of the State of Alarm decreed in Spain.
How to apply for bankruptcy proceedings in Spain
Royal Decree-Law 8/2020 introduces changes to the deadlines for applying for bankruptcy proceedings in Spain, whether voluntary or necessary. It also empowers the judges to reject applications, up to two months after the end of the state of alarm.
Director’s Liabilities during the State of Alarm
Royal Decree-Law 8/2020 amends certain obligations of company directors when there is a legal or statutory cause for dissolution or if the company finds itself in a state of insolvency.
