Since September 1, 2010, Section 4 of Title 1 in Book II of the Commercial Code, pertaining to partnerships limited by shares, as well as the laws governing Public Limited Companies, Limited Liability Companies, and Title X of the Stock Markets Law concerning publicly listed companies, has been repealed.
This article provides a concise overview of various methods for enforcing legal demands in different types of debt collection proceedings in Spain: ordinary civil proceedings, civil proceedings involving exchanges or checks, and civil proceedings involving a summons.
The strict reading of Article 97.2 may harm a creditor with a debtor-specific guarantee, as it implies automatic extinguishment without additional criteria. Unfortunately, the current wording doesn’t support a discretionary judge interpretation, posing a risk of guarantee extinguishment without due consideration.
To determine the assets of a deceased party in Spain, take the following steps: create an account on the Registry of Movable Assets website to access their registered assets, and check for company ownership and financial status through the Registry of Commerce using the same process.
The employment agreement for executive managers in Spain is governed by the provisions outlined in Royal Decree 1382/85 of August 1, which regulates the unique employment relationship of executive managers.
The recent Spanish Bankruptcy Law expands the examination of company managers’ liability, supplementing existing provisions in the Public Limited Company and Limited Liability Company Laws, as well as the Criminal Code, within the context of corporate crime. It introduces a classification section in bankruptcy proceedings where the judge assesses the involvement of company managers in the company’s bankruptcy situation.
The Spanish legal system offers creditor protections for companies that cease commercial operations but remain inactive, failing to undergo the necessary dissolution and liquidation processes. Typically insolvent, these companies neglect corporate debts and obligations by discontinuing trading, abandoning the business premises, not filing annual accounts with the Commercial Registry, neglecting tax payments, and failing to fulfill other corporate obligations mandated by law.
On May 4, 2010, the Procedural Law in Spain underwent a reform with Law 13/2009, significantly expanding the application of the law. The small claims procedure, known as “proceso monitorio,” saw a substantial extension in its scope. Under the reformed legislation, debts of up to €250,000 can now be recovered, a significant increase from the previous limit of €30,000.
The LLC corporate form is highly recommended for small to medium-sized businesses due to its relaxed reporting requirements, relatively low initial capital (around 3,006 Euros), and limited liability for members. According to legal experts, approximately 90% of new companies in Spain are LLCs, with the remaining 10% being various forms of partnerships.
The inheritance and gift taxes in Spain taxes the increase on wealth of a property, right or asset, the first one by reason of death of the transferor, the second one while still alive. Both must be paid by the beneficiaries, the amount will be vary depending on which autonomous community the asset is.
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