
How to structure deferred payments and cross-guarantees in small-market M&A transactions
In small-market M&A transactions, deferring part of the purchase price is not an exception but a common feature of the deal structure. It reflects not
The SAP IB 3022/2023 ruling dated 23 November 2023 issued by the Provincial Court of Palma de Mallorca, heard the case referring to a lack of agreement between two joint and several directors of a company, which in turn was a shareholder of another legal entity, in relation to which of the directors should act on behalf of the company at the General Shareholders’ Meeting.
The relevance of the ruling lies in the fact that the two directors had sufficient powers to represent the company at the general meeting, but with the exclusion of representation in favor of the other company.
Thus, the ruling applies Article 126 of the Capital Companies Act by analogy, to conclude that this is the same as in cases where the co-owners of company shares must appoint a single representative of the joint ownership for the purpose of attending and voting at the general meeting.
The appointment of a single representative allows for the unified exercise of the shareholder’s rights, which, as we can see, also applies in situations of co-ownership of company shares, similar to an estate pending distribution.

In small-market M&A transactions, deferring part of the purchase price is not an exception but a common feature of the deal structure. It reflects not

Equity compensation plans raise particularly complex tax questions when the beneficiary relocates to Spain. In these cases, it is not enough to look at the

Investors setting up a company in Portugal usually end up choosing between two corporate forms: the private limited company (sociedade por quotas, Lda.) and the
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