
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
During a general meeting, the shareholders discussed the re-election of directors after the expiry of their term of office. However, the votes were tied, preventing an agreement from being reached. Subsequently, an application was made to register this ‘non-approval’ in the commercial register by means of the notarial minutes of the meeting. The commercial registrar refused registration on the grounds that the Capital Companies Act (LSC) requires a majority for the adoption of resolutions and does not provide for mechanisms to resolve ties in the voting at the meeting.
The Directorate General confirmed this decision on the basis of three main arguments:
The resolution emphasises that the Commercial Register cannot be used to reflect situations that do not constitute registrable acts under the law. Furthermore, it underlines the importance of providing for solutions in the articles of association to avoid the paralysis of the company due to a lack of resolutions. In this context, the resolution of ties could be addressed through measures such as the intervention of an arbitrator or additional mechanisms provided for in the articles of association, although their validity would depend on the judicial analysis in each case.

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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