The Spanish Cabinet has declared it is urgent to debate and approve a proposed law previously sent to the parliament partially amending the existing Spanish Law of Corporations (including S.A. and S.L. companies).

The Spanish Cabinet has declared it is urgent to debate and approve a proposed law previously sent to the parliament partially amending the existing Spanish Law of Corporations (including S.A. and S.L. companies).

law2The Spanish Cabinet has declared it is urgent to debate and approve a proposed law previously sent to the parliament partially amending the existing Spanish Law of Corporations (including S.A. and S.L. companies).

At this stage, these are some of the changes worth to be mentioned:

–          Continuance with the already initiated line of reducing the costs due for a company’s organization and functioning.

–          Elimination of some of the most unjustified differences between the legal system regulating S.A. companies and the one of S.L. companies.

In what refers to the indicated elimination of differences there is a general unification of regulation concerning several items such as the possibility to incorporate legal causes of shareholder’s exclusion in the company’s bylaws; the unification of the legal causes for the company’s winding up due to inactivity; or the unification of the legal regime applicable to the dissolved company’s liquidators.

Regarding companies operating in stock markets, the legal reform tends to ease and promote the shareholders’ rights about information and vote within the European Union territory in order to guaranty that the summons for general meetings and documentation needed to attend these are at the disposal of the shareholders with sufficient time in advance regardless their place of residence and they can therefore decide and vote without obstacles. For this purpose, the reform incorporates the EU Directive claiming for the removal of obstacles such as the existing ones for electronic or internet-based communication systems in order for non-residents to be in equal conditions with the resident members or shareholders even when those are not physically present.

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