Implementation Of Legislation Aimed At Avoiding Conflicts Of Interest Between High Level Government And Public Administration Posts

1 July 2009

On March 27, Royal Decree 432/2009 approved Regulations implementing Law 5/2006 dated March 10, 2006 which regulates conflicts of interests between members of government and high level Public Administration posts.

In an attempt to strengthen the ethical aspects of actions of top officials in the Administration, this rule aims to prevent conflicts of interest in the public sector and guarantee the transparent and objective nature of these posts.

From a company and commercial point of view, the true importance of this law lies in the fact that it implements regulations for any conflicts of interests which may arise between said officials and the Spanish executive branch if the latter hold posts in the companies’ administrative bodies.

This rule has a triple aim: firstly, to get top officials to declare public or private activity they undertake, either personally or by proxy, which may be remunerated; secondly, to obtain declarations of interests, referring to professional, commercial or employment activity undertaken in the two years prior to the holding of said post, either on their own behalf or for the account of an employer; and finally, to obtain declarations of assets which includes all assets, rights and obligations of said top officials.

For further more information please contact Uri Geigle: [email protected]