Introduction
Facts
Decision
Comment
The A Coruna Court of Appeals recently addressed two key issues relating to a shareholders’ right of separation regulated under Article 348bis of the Companies Act namely:
- when a separation is effective; and
- what happens when the credit right for reimbursement leads the company to insolvency.(1)
Article 348bis of the Companies Act (1/2010), which came into effect on January 1 2017, recognises the right of separation of minority shareholders of non-listed companies in the case of non-distribution of dividends. In particular, this provision addresses one of the most common abuses by majority shareholders: rejecting the distribution of dividends even if the co…
Read the full article at: https://www.internationallawoffice.com/Newsletters/Litigation/Spain/Prez-Llorca/Right-of-separation-of-minority-shareholders-and-insolvency-proceedings