{"id":37235,"date":"2024-12-24T06:32:59","date_gmt":"2024-12-24T06:32:59","guid":{"rendered":"https:\/\/www.asesoriaorihuelacosta.com\/?p=37235"},"modified":"2024-12-26T21:42:57","modified_gmt":"2024-12-26T21:42:57","slug":"statutory-reforms-when-and-why-to-carry-them-out-in-your-company","status":"publish","type":"post","link":"https:\/\/www.asesoriaorihuelacosta.com\/en\/statutory-reforms-when-and-why-to-carry-them-out-in-your-company\/","title":{"rendered":"Statutory reforms: when and why to carry them out in your company"},"content":{"rendered":"\t\t
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\u00a0Statutory reforms<\/b><\/i> in commercial companies can be carried out for various reasons, some imposed, others voluntary. Do you want to know more? Don’t worry, here we explain it all…<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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Amendments to the articles of association: when and why they should be made in a commercial company<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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First of all, it should be noted that any changes <\/b>made to the Articles of Association must comply with the Spanish Companies<\/a> Act (LSC) and the Spanish Commercial Code<\/a> (CC).<\/p>

And, as a general principle, amendments to the Articles of Association must be made when there is either an event that makes them necessary or an intention to change on the part of the company’s management or the entrepreneur<\/a>.<\/p>

However, in order to make changes to the articles of association, a General Meeting of Partners<\/a> or Shareholders<\/a> must be convened, whether ordinary or extraordinary.<\/p>

It is these, provided they represent the necessary quorum, that will validate the change. Let’s take a look at the main cases <\/b>that motivate change:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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In practice, many companies, especially SMEs or small companies, do not hold a formal shareholders’ meeting or even call a shareholders’ meeting, but at the same time as signing the amendments to the articles of association at the notary’s office they usually sign a document with the agreements that are to be signed at the notary’s office as well.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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1. Statutory amendments as required by law<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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In many cases, legal requirements <\/b>are the reason for a company to change its Articles of Association.<\/p>

For example, if there is a change in the law that makes it necessary to introduce changes in the Articles of Association or if they have become outdated, so that it is necessary to change them in order to avoid legal problems.<\/p>

Changes in the LSC, in the CC, in Data Protection or in Equality may make such changes necessary.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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It should be borne in mind that non-compliance with the rules entails increasingly heavy penalties.<\/p>

Therefore, having the Statutes up to date in this respect is a prerequisite for avoiding problems.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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2. Change of corporate structure<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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Changes in the<\/b> company structure<\/b> are another reason that may directly or indirectly motivate a change of Articles of Association.<\/p>

For example, in the case of a limited company, it may be necessary to restructure the composition of the shareholders and to record it, and here the reason would be direct.<\/p>

In a limited company, on the other hand, if a shareholder controls the majority of the capital, he can use that power to make changes to the structure of the organisation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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3. Change of the type of commercial company<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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It is possible that a limited company<\/b> has grown to the point where it needs more capital<\/b> to maintain its activity.<\/p>

If this is the case, it is possible that a transformation into a public limited company<\/b> may be considered.<\/p>

Only in this way, for example, can it compete on the stock markets for financing.<\/p>

This transformation <\/b>has to be approved by the General Meeting of Shareholders, but would undoubtedly entail a change in the Articles of Association.<\/p>

Not surprisingly, the minimum share capital would have to be changed to at least 60,000 euros, which would have to be made available.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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At Asesor\u00eda Orihuela Costa<\/strong> we have a team of specialists for companies,find out more about<\/a> our services without obligation!<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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4. Modification of the share capital<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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In the case of amendments to the articles of association due to a change in the share capital<\/b>, be it an increase or a reduction, this must be stated in the articles of association.<\/p>

However, it should be clarified that we are talking here about the nominal share capital, not necessarily the market value.<\/p>

In case of rapid growth or sale of assets or divestment, such changes will be necessary.<\/p>

As both scenarios can occur, they should be noted as possibilities.<\/p>

It should be noted that, in this case, it is not necessary to change the commercial company.<\/p>

You simply need to state this and, of course, have the funds available.<\/p>

In a limited company the minimum capital is 3,000 euros, which rises to 60,000 euros in a public limited company.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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5. Statutory reforms due to changes in the organisational chart<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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The Articles of Association must include a number of mandatory positions according to the law.<\/p>

However, each commercial company can decide how to structure its organisation chart beyond that.<\/p>

However, if changes<\/b> are to be made to the organisation chart<\/b>, this has to be done via an amendment of the articles of association.<\/p>

This can also be used to clearly define what the subsidiary civil liabilities<\/a> are.<\/p>

Beyond what the legislation says, there are other issues which, in this case, could be defined much more clearly and precisely, and which should be pointed out.<\/p>

Let us remember, moreover, that commercial companies in Spain now also have criminal liability.<\/p>

Knowing which positions would be responsible is vital in these cases.<\/p>

In general, this is more likely to be the case in public limited companies than in private limited companies.<\/p>

However, it is not something to be disdained.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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Therefore...<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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There are many reasons for reforming the articles of association of a commercial company.<\/p>

However, when in doubt, it is highly advisable to seek specialist advice.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

\u00a0Statutory reforms in commercial companies can be carried out for various reasons, some imposed, others voluntary. Do you want to know more? Don’t worry, here we explain it all… Amendments to the articles of association: when and why they should be made in a commercial company First of all, it should be noted that any 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reforms: when and why to carry them out in your company - Asesor\u00eda Orihuela Costa<\/title>\n<meta name=\"description\" content=\"\u27a2 STATUTORY REFORMS in COMMERCIAL COMPANIES can be made by request or voluntarily. \u27a2 Get to know the cases!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.asesoriaorihuelacosta.com\/en\/statutory-reforms-when-and-why-to-carry-them-out-in-your-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Statutory reforms: when and why to carry them out in your company - Asesor\u00eda Orihuela Costa\" \/>\n<meta property=\"og:description\" content=\"\u27a2 STATUTORY REFORMS in COMMERCIAL COMPANIES can be made by request or voluntarily. \u27a2 Get to know the cases!\" \/>\n<meta property=\"og:url\" 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