Companies with property problems

Since 2008 has been in force Royal Decree 10 / 2008 law that, in certain cases, allowed companies with economic problemsNot urge the dissolution of the company below the legally required equity funds, thus safeguarding the responsibilities of managers of such enterprises.

The standard, extended by the Government since 2008 to 2014, determined that, in an extraordinary way, no impairment losses recognized in the financial statements, derived from plant and equipment, investment property or stocks be computed.

Mainly it wanted to prevent the closure of real estate companies that, as a result of the impairments listed, had a net worth less than half of the share capital and thus were immersed in compulsory grounds for dissolution of the company for social losses.

In addition, the extension of 2014, the Government went further and not only extended the previous content but added some new assumptions to the list of impairments excluded from the calculation of losses: those from loans and receivables.

As for the year 2015 the Government has decided not to extend that rule, many companies with economic problems and their managers should carefully examine whether they are affected by being subject to a cause of compulsory dissolution, must, where appropriate, take appropriate legal action.

This will affect both the Corporations as limited partnerships, also affecting corporations, whose net worth does not exceed 2 / 3 parts of the capital and therefore are obliged to reduce its share capital to bring its heritage status which had also been favored by the exceptionality not count impairments recognized by the Royal Decree 10 / 2008 Act and its subsequent extensions.

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Marcos Jimenez, dig advocats

Marcos Jimenez de Parga

DiG Lawyers