The foreign creditor in bankruptcy proceedings in Spain (4): Liability of debtors and directors
Spanish bankruptcy regulations list the conducts that determine the liability of the directors in bankruptcy proceedings. The consequences of such behaviour include disqualification, loss of rights associated with the position of a creditor of a bankruptcy or a sentence to cover the insolvency deficit.
Capital increase through credit compensation in Spain
The capital increase through credit compensation reduces the risk of insolvency and avoids the declaration of insolvency proceedings, thus providing a solution for companies with high liabilities.
A digital disconnection policy is compulsory for companies in Spain
Article 18.2 of Law 10/2021 of 9 July on remote work establishes the obligation for companies to have an internal policy defining the modalities of exercising the right to disconnection and the training and awareness-raising actions for staff on the reasonable use of technological tools.
The uncompensated post-contractual non-competition clause in Spanish employment contracts
Article 21 of the Workers’ Statute (“ET”) regulates the post-contractual non-competition clause in Spain. One requirement for its validity establishes that an “adequate financial compensation is paid to the worker”.
Bankruptcy in Spain (3): Directors’ Liability in bankruptcy proceedings
Although Royal Decree-Law 5/2021 exempts directors from the duty to file for insolvency proceedings, it does not exempt them from the responsibility to avoid the winding-up of the company.
Bankruptcy in Spain (2): Mechanisms and measures to prevent corporate insolvency in Spain
Pre-bankruptcy mechanisms and labour, corporate or procedural measures can prevent and restrain the high number of insolvency filings expected following the insolvency moratorium in Spain.
Bankruptcy in Spain (1): New moratorium to request insolvency
Official data reveal a sharp increase in insolvency filings in 2021. Estimates suggest that after the extended moratorium on insolvency proceedings until 31 December, the number of insolvency proceedings will rise significantly.
Companies and remote working: what happens after the state of emergency?
The end of the state of emergency in Spain marks 9 August as the end date for remote working. However, the entry into force of RDL 28/2020 encourages this type of work, whose mixed remote working models are becoming more apparent. Companies will have to adapt their labour regulations to the new law.
Can a company in Spain appoint a Foreign Director?
The possibility of designating a Foreign Director is one of the most pertinent questions for foreign individuals and companies intending to develop a business via a capital company in Spain.
Maximum sum insured and how it affects injured parties
In Spanish law, there is no conclusive solution regarding either the criterion applicable to the distribution of the maximum sum insured between the injured parties or the appropriate legal proceedings for its effectiveness.
