LIMITED COMPANY IN SPAIN / S.A. Shareholder Right of exit. No dividends distribution.


Capital Companies Law states in its 348 bis) article the shareholder right of exit the company (SA / Limited) in case dividends are not distributed for 5 consecutive years.

It means that if you vote "yes" to dividends distribution in the General Meeting but majority votes "no", you have the right to leave the company. In this case the company has the obligation to buy your share/shares. There is a legal procedure to fix the price if there is no agreement between the parties.

This right was introduced in the Law jus a few years ago. It was suspended during financial crisis, but now it´s already available to anyone who needs to use it. The right is exclusive for non-listed companies shareholders.

If you are interested in exercising your right as a shareholder please let me know. I´m sure I can help.

José Zambrano.