Manager’s Liability within the Framework of Bankruptcy Proceedings in Spain
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.
Impact of company abandonment in Spain on the system of managerial liability
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.
Changes to the small claims procedure in Spain
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 Spanish LLC: advantages, disadvantages, and differences with a regular corporation
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.
Taxes on inheritance and gifts in Spain
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.
Redundancies in Spain in times of crisis: economic and productive reasons
The Spanish Code of Labour Law (Estatuto de los Trabajadores) sets out a particular type of redundancy known as redundancy based on objective reasons. There are several reasons for which …
Spanish Insolvency Law: the responsibility of directors in a situation of insolvency
Spain’s Insolvency Law safeguards creditors in instances of director misconduct or negligence during company insolvency, ensuring confidence in the legal framework’s protection for creditors.
The new Capital Company Law in Spain
On July 2nd, the Council of Ministers approved the Redrafted Text for the Law of Capital Companies (Royal Legislative Decree 1/2010). Effective from September 1, 2010, it unifies regulations for various company types, addressing organizational issues and imperfections.
How to start an SME in Spain
Establishing a business in Spain demands understanding not only the local legal system and traditions but also compliance with European directives and international conventions. This intricate legal landscape necessitates a comprehensive assessment of how both Spanish and international laws impact the initiation of a new business venture by an optimistic foreign entrepreneur.
Spanish law against late payments in commercial transactions
The Law establishing measures to fight against late payments in commercial transactions (3/2004 Law of December 29th) represents the culmination of a legislative process developed to adapt the Spanish legislation to …
