Online meetings of shareholders in Spanish companies
As a result of the COVID-19 pandemic, many Spanish companies have been forced to change their internal organization. A good example of this is the way in which shareholders’ meetings can be held today. As a result of mobility restrictions, fewer people can be present in person today.
In view of these restrictions, the Spanish Government had to adapt the rules for online attendance of shareholders’ meetings and to amend the Spanish Law on Capital Companies (Ley de Sociedades de Capital). This new amended law will enter into force on 3 May next.
What will change? The new law provides, among other things, that both public and private limited companies can include in their articles of association that meetings may be attended online.
The directors will soon be able to determine that members who wish to attend the meetings online must notify the company in advance. Shareholders are able to make their comments during the (online) meeting or make them known within seven days after the meeting.
In addition, it will be possible to have the meetings exclusively online (video meeting). Hereto, of course, must the requirements set by law be met.
It has been clear that the changes as a result of COVID-19 are of a permanent nature. In practice, meetings are increasingly taking place online, which means that the regulations must be adapted to the practice.
The lawyers of OTIS Advocaten are always aware of the latest changes. We are happy to help you drafting or adjusting the articles of association of your (new) company. If the articles of association are drawn up correctly, you can save a lot of trouble in the future.