Deadline for adapting foundation and association bylaws extended

28 October 2011

On July 21, 2011, the Official Gazette of the Catalonian Regional Government published Act 5/2011 of July 19th modifying Act 4/2008 of April 24th which deals with the book III of the Catalonian Civil Code regarding legal entities.

The preamble to the new legal text acknowledges the insufficiency of the period of adaptation and recording of the bylaws for associations and foundations existing when Act 4/2008 went into effect establishing the first temporary provision (in effect until August 2, 2011).

There was the risk that the consequences for breach of the period of adaptation would affect a large majority of Catalan foundations and associations. Thus, since any breach would have meant that the foundations could not obtain help or subsidies from the regional government, and would have been a major breach in the obligations incumbent upon the owner, authorizing the Commission to exercise the corresponding legal actions. For associations, the main consequence would have been the loss of the right to receive subsidies, accompanied by the loss of profits resulting from registry publicity.

In order to avoid these negative consequences, Act 5/2011 extends the adaptation period until December 31, 2012.

For further information, please contact Uri Geigle: ugeigle@mmmm.es