Formal Requirements Should Not Determine Company Interest Test

26.08.2003 - International Law Office 26 August 2003

Spanish law establishes the capital increase requirements necessary to deprive shareholders of the right to take out an option on new shares in proportion to their shareholding. For such action to be undertaken, a company interest must be at stake. Mere application of the formal requirements for determining such interest can lead to results which contravene the spirit of the law.