Enforceable contractual guarantees: the bank guarantee payable on first demand
Among enforceable personal contractual guarantees, the bank guarantee payable on first demand stands out. With this type of guarantee, a banking institution commits to respond to the fulfilment of an obligation, automatically and immediately, and without the ability to demand clear evidence of noncompliance.
Debt prevention measures in Spain
A debtor’s default or delay is established if the debtor cannot satisfy his obligation to pay after receiving an overdue notice. At the time of contraction, companies in Spain can take preventive steps to deter defaults from the outset and to improve their legal position in a legal dispute.
Business purchase agreements: the asset vs the share purchase agreement
A correct evaluation of both a possible purchase of the assets of a company (asset purchase agreement) or a direct acquisition of stocks and shares (share purchase agreement) will determine the best option to enter the Spanish market.
The transformation of a General Partnership into a Limited Partnership
A general partnership is a contract through which two or more people agree to a share capital, with the purpose of undertaking a business activity and distributing the profits. It is an obsolete and uncommon form in the Spanish commercial market, for which, on numerous occasions, it is necessary to transform such partnerships into an LLC or corporation.
Corporate Housekeeping Duties in Spain
For legal existence in Spain, companies must fulfil important formalities. The so-called “corporate housekeeping duties” include the registration of the company with the commercial register, the keeping of the minutes of all the meetings of the shareholders and management, the careful management of an accounting and the timely submission of the annual accounts.
Adaptation to the General Data Protection Regulation (GDPR) in Spain
The GDPR is directly applicable in all EU member states and introduces new obligations for companies. Since member states have leeway for deviations, Spain has already drafted a legislative proposal.
Procedure to move the legal headquarters in Spain
The modification of the legal headquarters of a company in Spain has traditionally been the responsibility of the general meeting. The LSC now expedites this procedure with the entry into force of the 15/2017 Royal-Decree-Law providing a new interpretation of article 285 of the LSC and thus clarifying that the change of the registered office will be the responsibility of the Administrative Body.
Training Contracts in Spain
Training contracts are one of the peculiarities of working engagements in Spain, since various types exist and each has their own distinct systems and regulation. We can therefore discern the Internship Contract and the Contract for Training and Apprenticeship
The contract guarantees in Spain
Contract guarantees are types of contracts that provide greater security to the settlement of a debt. In Spain there are different types of guarantees: personal guarantees, security rights, financial guarantees or constitutional guarantees.
The contract of the managing director in Spain
The Corporate Enterprises Act in Spain requires an agreement on the appointment of a managing director if the executive power is vested in a board member. The appointment of the managing director shall require the favourable vote of two-thirds of the board members.
