Changes in Insolvency and Commercial Announcements

10 March 2008

On March 28 2007 the Supreme Court of Justice overruled various clauses of Royal Decree (RD) 685/2005 of June 10, concerning insolvency proceedings. Thus the regulatory vacuum that was created has now been filled with RD158/2008 of 8th February, which also affects the Mercantile Registry by improving the information in the Central Mercantile Registry.

The following information describes the content of the RD in question, which came into force on February 11 2008.

With respect to insolvency proceedings it ensures the registry of resolutions issued in bankruptcy proceedings declaring guilty debtors and arranging the appointment or incapacity of the receivers, as well as public announcing of bankruptcy and other means of intervention that must be recorded in the provincial and Central Mercantile Register.

With respect to commercial proceedings it establishes:

  • The Provincial Mercantile Registrars should submit information to the Central Mercantile Register immediately after the corresponding registration, not within 3 days as was the case previously.
  • The identity of the administrators and representatives must be unambiguous, by providing their national identity number or tax identification number and, in the case of foreigners, their foreign identification number or, in the absence of this, the passport or travel document number.
  • Publication through the Central Mercantile Register by deposit in the Mercantile Registor of parasocial pacts, and on registration of these, of the regulations of the general shareholders meetings and board of directors. The purpose of this is to increase the transparency in the operation of listed companies.
  • Lastly, the timeframe for temporary reservations of a corporate name and the duration of the certificate of company name availability, are reserved for the regular users in other country members of the EU. In this case, the usual timeframe of fifteen months for temporary reservation becomes six months, and the time for certificate of company name availability goes from three to two months.

For further information, please contact César García de Quevedo Puerta: