Important ruling by the Spanish Supreme Court (First Civil Division) on 20 February 2025. - LIUZZI e LIUZZI Spanish/Italian and International law firm

SPANISH CORPORATE LAW- DERECHO MERCANTIL ESPAÑOL- COMPANIES IN SPAIN

Important ruling by the Spanish Supreme Court (First Civil Division) on 20 February 2025.

‘On preventing a shareholder from participating in the shareholders' meeting and on the method of convening it.’

In February 2025, the Spanish Supreme Court of Cassation established fixed points on the impossibility of participating in the shareholders‘ meeting in Spain due to a sudden change in the method of convening the shareholders’ meeting (with th aim of preventing a shareholder from taking part).

The ruling states that ’ The loss of the affectio societatis by the claimant and his disagreement with the other partners does not justify the fact that the Board of Directors (in Spain of a Spanish company) acted in violation of the rules of good faith, nor does it imply that the claimant partner should have foreseen that the Spanish Board of Directors would have adopted such behaviour aimed at preventing him from becoming aware of the convocation of the assembly. Furthermore, it cannot be forgotten that the judgement establishes as proven fact that the appellant was in correspondence (via email) with one of the other two partners in the company, without this informing her of the change in the way in which the shareholders' meetings were to be called that was about to take place.’

The conduct adopted in Spain by the ‘Órgano de administración’, that is the Spanish Board of Directors, was in practice aimed at preventing the meeting from being called and therefore participating in the capital increase agreed during the meeting.

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