Spain: Deadlines for Preparation and Approval of the 2019 Annual Accounts

3 June 2020 - Christian Krause

Royal Decree-law 19/2020 of 26 May (“RDL 19”), has specified or slightly modified Royal Decree-law 8/2020 of 17 March (“RDL 8”) with respect to the deadlines for the preparation and approval of annual accounts corresponding to financial year 2019 in Spain.

Christian Krause Moral Abogado +34 91 319 96 86

In a previous article we briefly explained the normal process for preparation, audit and approval of annual accounts, as well as the modifications introduced due to the  COVID-19 crisis.

Let us look at the changes mentioned above:

  1. Preparation of the 2019 annual accounts (Article 40.3 RDL 8)

Until the entry into force of RDL 19, the deadline was three months from the end of the state of alarm. Now, RDL 19 establishes a concrete start date for the term, that is, 1 June 2020. If we calculate the term in accordance with the Civil Code, directors will have until 1 September 2020 to prepare the annual accounts.

  1. Approval of the 2019 annual accounts (Article 40.5 RDL 8)

For the approval of the annual accounts, shareholders no longer have three months since the deadline for their preparation; they now have only two months, that is, until 1 November.

This is, ultimately, one more effect of the COVID-19 crisis on corporate procedures in a company.