Rectification of a capital increase requires the agreement of the General Meeting of Shareholders
The reduction of the share capital must be adopted by a resolution to decrease the share capital, complying with the requirements of the Capital Companies Act and with the adoption of the creditor protection mechanisms deemed necessary by the General Meeting. In the Resolution dated 16 October 2023, the Directorate General for Legal Security and […]
Deductibility of remuneration received by directors without approval by the general meeting of shareholders
The Supreme Court considers that the remuneration received by the directors cannot be considered as mere donations due to the fact that they are not approved by the General Shareholders’ Meeting or due to the commercial nature of the relationship with the company. In the ruling of 18 January 2024, STS 214/2024, the Supreme Court […]
Shareholder’s standing to bring a company action for liability brought by the company
The shareholder is entitled to bring a direct company action in cases of breach of the duty of loyalty, irrespective of whether the company has previously brought such an action. By allowing the shareholder to have standing to bring the identical action, the right of the minority shareholder is protected, who would not be left […]
Registration of a corporate resolution to rescind a previous transformation resolution
Corporate resolutions that seek to render a previous resolution null and void shall not have retroactive effect and must meet the requirements laid down in the legal system for the adoption of the new resolution. In 2020, a public limited company adopted by majority vote a resolution to convert into a limited liability company. In […]
Related-party transactions and directors’ duty of loyalty
Directors have a duty to act in good faith and in the best interests of the company, and must therefore refrain from participating in the deliberation and voting on resolutions and decisions that give rise to a direct or indirect conflict of interest. In judgment 504/2023 dated 29 November 2023, the Barcelona Provincial Court heard […]
End of the Portuguese Non-Habitual Residents Regime (“RNH”)
On the November 29th, 2023, the Portuguese Parliament have approved the Portuguese Budget Bill for 2024 (the “Budget 2024”). After one and a half month of discussions and a lot of uncertainty, it was confirmed that the current special tax regime for Non-Habitual Residents (the “NHR”) will have some relevant changes. To clarify, we will […]
Build to Rent. Legal considerations in Spain
In the real estate sector, Build to Rent is understood to mean an investment in assets with the ultimate aim of obtaining income from long-term leases of the assets. The investment typically funds the acquisition, development, building, rehabilitation or adaptation of the asset, which is usually real estate. The impact on the global economy of […]
International relocation to Spain from non-EU countries
Spain is increasingly emerging as an attractive destination for foreign investment and high net worth individuals, as it offers tax efficient structures in an EU country. One result is that emerging companies and those with an advanced track record should consider Spain as a place to establish their holding corporate structure. Advantages of Spanish domicile […]
Joint and several liability of the administrator for dissolution of the company
I. Introduction In this article we will deal with the liability regime of directors for company debts, with emphasis on those contracted against the Social Security regarding ruling 1103/2022 handed down on 27 July 2022 by the Administrative Chamber, Third Section of the Supreme Court, which is the subject of analysis, as well as the […]
New Startup Law: Law 28/2022, of 21 December, to promote the startup ecosystem
Spain has adopted important changes to corporate and personal tax that encourage foreign investment and the movement of qualified professional talent. I. Main novelties The Startup Law amends relevant provisions in Spain’s main tax laws: the Personal Income Tax Law, the Non-Resident Income Tax Law, the Wealth Tax Law and the Corporate Income Tax Law, […]
