With the Penal Code reform in Spain, in the event a company is declared criminally responsible, direct consequences include the following:
- Imposition of a criminal penalty, not only pecuniary but also dissolution or temporary suspension of the company activity
- Temporary closure of establishments
- Prohibition on carrying out certain activities within the framework of its corporate purpose
- Disqualification from receiving subsidies, public aid and judicial intervention
Other consequences might also be serious and harmful for companies:
- Negative impact on customers and suppliers
- Difficulties in obtaining loans/credit from financial institutions
- In the case of listed companies, consequences on the price of the shares
- Social and corporate smear in the media
The Penal Code reform will enter into force in Spain on 1 July 2015. Companies are recommended to draw up an adequate organisation and management plan to prevent crimes and stay free from criminal responsibility in the future.
For additional information regarding the criminal liability of companies in Spain,
