Penalties for Failure to Deposit Annual Accounts on Time in Spain

This entry was posted on 24 June 2021 by Christian Krause

In the Spanish Law on Capital Stock Companies (Ley de Sociedades de Capital or “Law”), there is an article (283) which historically has not been attributed much importance because in practice either it was not applicable or very seldomly applied. The article foresees various fines (up to 300,000 euros) for companies that do not deposit their annual accounts by the legally established deadline.

2020 Losses Will Temporarily Not Count as Cause for Dissolution of Companies in Spain

This entry was posted on 2 June 2021 by Christian Krause

The Spanish Law on Capital Stock Companies (Ley de Sociedades de Capital) establishes that a company has an objective cause for dissolution when losses decrease net equity to an amount equal to less than half of its capital. Within two months of when the governing body learns or should have learned of said situation, it must call the shareholders to a meeting to adopt the necessary corrective measures, proceed with dissolution of the company or request a declaration of insolvency. Failure to comply with this obligation implies that the director is jointly and severally liable for the corporate obligations subsequent to the occurrence of the legal cause for dissolution.

Kapitalgesellschaftsgesetz Spanien

Here to Stay: Revision of the Spanish Law on Capital Stock Companies is Supposed to Lead to Complete Digitalisation of Meetings of Spanish Corporate Bodies

This entry was posted on 20 May 2021 by Nina Bremi

Some of the changes caused by the COVID-19 pandemic have come to stay. The crisis has dramatically shown us the importance of digitalisation regarding both public and private life. For companies, investing in digital technologies has proven to be a means of resilience. Following this trend, an amendment to the Spanish Law on Capital Stock Companies (Ley de Sociedades de Capital or “LSC”) is supposed to make complete digitalisation of meetings of the Spanish corporate bodies possible. This article analyses the planned legal reform and its relevance for Spanish companies.

Co-ownership of Participations in Spain

Co-ownership of Participations in Spain: Status as Member and The Individual Exercise of Rights

This entry was posted on 2 March 2021 by Christian Krause

When dealing with co-ownership of corporate participations in Spain, in practice there are doubts about whether the co-owners are individually considered members (socios), as well as regarding the way in which to exercise rights inherent to the participations. The ruling handed down by the Spanish Supreme Court on 12 November 2020 clarifies these issues.

Direktinvestitionen in Spanien

Tighter Controls for Foreign Direct Investments in Spain

This entry was posted on 29 January 2021 by Nadja Vietz

By means of a series of emergency decrees, which we explained in this article, the legislature significantly limited the original principle of liberal investment politics in Spain just before summer. Recently, new restrictions entered into force. In Royal Decree-Law 34/2020, of 17 November, effective 19 November, the Spanish government yet again tightened control mechanisms for foreign investment in Spain.

Investing Successfully in Spain after Coronavirus

This entry was posted on 13 July 2020 by Nadja Vietz

The climate for investments in Spain is good and bodes well for the future. Despite a multitude of emergency regulations in the past several months, the legislature’s intentions are generally foreseeable. Additionally, certain industries continue to benefit from low salaries in comparison with other European countries and the attractiveness, particularly that Spanish cities have, for young professionals. This, in turn, leads to a higher level of education in the available work force while applicable labour law is comparatively attractive for entrepreneurs. The political situation has also stabilised, since, after several re-elections in recent years, Spain now finally has a government. It remains to be seen, however, how the new coalition government will support business owners.