{"id":19915,"date":"2026-06-22T13:38:04","date_gmt":"2026-06-22T13:38:04","guid":{"rendered":"https:\/\/seegman.com\/shareholders-agreements-and-good-faith-the-supreme-court-draws-the-line-at-shareholders-who-sign-and-then-sue\/"},"modified":"2026-06-22T13:38:05","modified_gmt":"2026-06-22T13:38:05","slug":"shareholders-agreements-and-good-faith-the-supreme-court-draws-the-line-at-shareholders-who-sign-and-then-sue","status":"publish","type":"post","link":"https:\/\/seegman.com\/en\/shareholders-agreements-and-good-faith-the-supreme-court-draws-the-line-at-shareholders-who-sign-and-then-sue\/","title":{"rendered":"Shareholders\u2019 agreements and good faith: the Supreme Court draws the line at shareholders who sign and then sue"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"19915\" class=\"elementor elementor-19915 elementor-19906\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-aeb57ba elementor-section-height-min-height elementor-section-content-middle elementor-section-stretched elementor-section-boxed elementor-section-height-default elementor-section-items-middle\" data-id=\"aeb57ba\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7c289b3\" data-id=\"7c289b3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-66ee9c0 elementor-section-stretched elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"66ee9c0\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wider\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-5bfa664\" data-id=\"5bfa664\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-50b0ecd elementor-widget elementor-widget-theme-post-title elementor-page-title elementor-widget-heading\" data-id=\"50b0ecd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"theme-post-title.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Shareholders\u2019 agreements and good faith: the Supreme Court draws the line at shareholders who sign and then sue<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-09b7820\" data-id=\"09b7820\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4d0c1ad elementor-section-height-min-height elementor-section-items-stretch elementor-reverse-tablet elementor-section-content-top elementor-section-boxed elementor-section-height-default\" data-id=\"4d0c1ad\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2966d49\" data-id=\"2966d49\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e7733ef elementor-widget elementor-widget-text-editor\" data-id=\"e7733ef\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2><strong>Shareholder conflicts now have a new limit: consistency with what you signed<\/strong><\/h2>\n<p>In family-owned and closely held companies, the shareholders\u2019 agreement is the document that governs what the articles of association do not address: how dividends are distributed, how assets are separated between family branches, and which majorities protect minority shareholders. The practical question many clients ask is what happens when one of the signatories changes their mind and later challenges, at a shareholders\u2019 meeting, the very resolutions that implement that agreement. The Spanish Supreme Court has now given a clear answer: they cannot do so without acting contrary to good faith.<\/p>\n<h2><strong>The case: two family branches, one agreement and a dividend in kind<\/strong><\/h2>\n<p>The dispute involved two family branches that together held 100% of the share capital of a limited liability company. In 2015, all shareholders entered into an omnilateral shareholders\u2019 agreement \u2014 signed by the entire share capital \u2014 setting out a roadmap for the gradual distribution of real estate assets, the separation of assets between the two family branches, a commitment to vote each year in favour of a minimum dividend of 50% of profits, and a clause establishing the prevalence of the agreement over the articles of association in the relationships between shareholders.<\/p>\n<p>At the shareholders\u2019 meeting held in June 2018, the 2017 annual accounts were approved and an interim dividend was ratified, paid partly in cash and partly in kind through the allocation of real estate assets. A minority shareholder, who had voted against the resolutions, challenged them. She argued that the articles of association did not provide for distributions in kind, that the valuations were outdated, and that the majority had acted abusively to the detriment of the company\u2019s interest.<\/p>\n<h2><strong>What the Supreme Court decided<\/strong><\/h2>\n<p>The Supreme Court dismissed both the extraordinary appeal for procedural infringement and the cassation appeal, confirming the validity of the resolutions. Two key ideas underpin the ruling:<\/p>\n<ol>\n<li><strong>An omnilateral shareholders\u2019 agreement may replace the unanimity that the law or the articles of association would otherwise require.<\/strong> Although the articles did not expressly provide for distributions in kind, a systematic interpretation of the agreement \u2014 gradual distribution of assets, separation of assets, minimum dividend \u2014 made it possible to conclude that such distribution had been implicitly authorised by all shareholders.<\/li>\n<li><strong>Challenging what one had undertaken to implement is contrary to good faith.<\/strong> A shareholder who signed the agreement and, moreover, received the dividend to which she was entitled under it, cannot later challenge the resolutions that implement it: the other signatories had a legitimate expectation that her conduct would be consistent with what had been agreed.<\/li>\n<\/ol>\n<p>This is not new doctrine, but rather the consolidation of an existing line of case law: the Supreme Court reiterates what it had already held in previous judgments regarding omnilateral shareholders\u2019 agreements and the challenge of corporate resolutions.<\/p>\n<h2><strong>The underlying principle: good faith as a limit on minority shareholder tools<\/strong><\/h2>\n<p>This judgment should not be read in isolation. It forms part of a broader trend in which the courts have been narrowing the scope for the use \u2014 and abuse \u2014 of the traditional tools available to minority shareholders. The same logic of good faith and prohibition of abuse of rights can be seen in case law on the withdrawal right for insufficient dividends, where the Supreme Court has accepted that its exercise may be abusive when the shareholder\u2019s true intention is not to receive the dividend, but to force their exit from the company. The message converges: shareholder rights exist to protect a legitimate interest, not to instrumentalise conflicts.<\/p>\n<h2><strong>What this means for your shareholders\u2019 agreement<\/strong><\/h2>\n<p><\/p>\n<ol>\n<li><strong>What you truly want to protect should be included in the articles of association whenever possible.<\/strong> The agreement binds those who sign it; the articles add enforceability against third parties and access to the Commercial Registry. They are complementary layers, not interchangeable ones.<\/li>\n<li><strong>What you sign binds you.<\/strong> If you entered into the agreement, you will not be able to contradict yourself by challenging the resolutions that implement it, especially if you have benefited from them. Consistency with one\u2019s own acts is now an effective limit, not a merely rhetorical one.<\/li>\n<li><strong>An omnilateral shareholders\u2019 agreement carries reinforced legal weight.<\/strong> When it is signed by 100% of the share capital, the unanimity required by law for certain decisions may be deemed satisfied by the agreement itself, even if it is not reflected in the articles of association.<\/li>\n<li><strong>Define the roadmap and the internal dispute-resolution mechanism.<\/strong> Distribution, asset separation, minimum dividend and a body for resolving differences \u2014 such as an advisory board \u2014 reduce litigation and strengthen the position vis-\u00e0-vis a dissenting shareholder.<\/li>\n<li><strong>For investors and funds, symmetry matters.<\/strong> Minority protections that have been agreed are valid; but the signatory is also bound by them. Veto rights and reinforced majorities should be carefully calibrated, without creating a disguised unanimity requirement that risks paralysing the company\u2019s corporate bodies.<\/li>\n<\/ol>\n<p><\/p>\n<h2><strong>How we approach it<\/strong><\/h2>\n<p>Designing a shareholders\u2019 agreement capable of withstanding conflict requires anticipating how a court may interpret it years later. At Seegman, we advise family businesses, shareholders and international investors on structuring shareholders\u2019 agreements and family protocols that are consistent with their asset-planning strategy and properly reflected in the articles of association and the Commercial Registry.<\/p>\n<p>&nbsp;<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-aa8a01e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"aa8a01e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-1a6805f\" data-id=\"1a6805f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9d92145 elementor-align-left elementor-mobile-align-center elementor-hidden-desktop elementor-hidden-tablet elementor-hidden-mobile elementor-widget elementor-widget-button\" data-id=\"9d92145\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-size-sm\" role=\"button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-download\"><\/i>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">DOWNLOAD<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-f944d18\" data-id=\"f944d18\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5874b56 elementor-section-height-min-height elementor-section-items-stretch elementor-reverse-tablet elementor-section-content-top elementor-section-boxed elementor-section-height-default\" data-id=\"5874b56\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e452e7a\" data-id=\"e452e7a\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;motion_fx_motion_fx_scrolling&quot;:&quot;yes&quot;,&quot;motion_fx_devices&quot;:[&quot;desktop&quot;,&quot;tablet&quot;,&quot;mobile&quot;]}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3db9f20 elementor-share-buttons--view-icon elementor-share-buttons--skin-flat elementor-share-buttons--shape-circle elementor-share-buttons--color-custom elementor-grid-0 elementor-widget elementor-widget-share-buttons\" data-id=\"3db9f20\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"share-buttons.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-grid\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-grid-item\">\n\t\t\t\t\t\t<div class=\"elementor-share-btn elementor-share-btn_linkedin\" role=\"button\" tabindex=\"0\" aria-label=\"Share on linkedin\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-share-btn__icon\">\n\t\t\t\t\t\t\t\t<i class=\"fab fa-linkedin\" aria-hidden=\"true\"><\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ad57e70 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ad57e70\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c880adc\" data-id=\"c880adc\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1ae0aaf elementor-widget elementor-widget-heading\" data-id=\"1ae0aaf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">More Technical Articles<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Shareholder conflicts now have a new limit: consistency with what you signed In family-owned and closely held companies, the shareholders\u2019 agreement is the document that governs what the articles of association do not address: how dividends are distributed, how assets are separated between family branches, and which majorities protect minority shareholders. The practical question many [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":9520,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[99,79,101,100],"tags":[87],"class_list":["post-19915","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all","category-article","category-business-law","category-corporate-governance","tag-article"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Shareholders\u2019 agreements and good faith<\/title>\n<meta name=\"description\" content=\"Shareholders\u2019 agreements and good faith: the Supreme Court draws the line at shareholders who sign and then sue\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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