Extraordinary measures against the economic impact of COVID-19

The extraordinary measures against COVID-19 come into force with RDL 8/2020 of 17 March.

This RDL includes a series of exceptional measures adopted by the government to deal with the impact of the current crisis situation.

In this entry we see the legal aspects of the company that the experts of our Legal Consulting Department summarize.

Extraordinary measures against COVID-19 Legal Aspects

Let’s look at the effects on unlisted legal entities under private law (civil and commercial companies, cooperative societies, foundations).

Deadlines and obligations suspended until the end of the alarm period

First, the deadline for preparing the annual accounts for 2019 (and any other documents that may be required in this process) is suspended until the end of the alarm state. After which it will be resumed for three months from that date.
In the event that the entity’s administrative body has already formulated the 2019 annual accounts before the declaration of the alarm state, the period for the accounting verification of the accounts (if the audit is obligatory) is suspended until the end of the alarm state. It will then resume for two months from that date.
The three-month period for holding the ordinary general meeting to approve the annual accounts for the 2019 financial year will be counted from the end of the period allowed for drawing up the accounts in question.
In the event of the dissolution of the company, the period for the administrative body to call the general meeting of shareholders to adopt the appropriate resolutions is suspended until the end of the state of alert. If the cause for dissolution has occurred during the state of alarm, the administrators will not be liable for the company’s debts incurred during that period.
The obligation of the company, in the event of insolvency, to apply for the declaration of bankruptcy is suspended. Furthermore, until two months after the end of the state of alert, the judges will not admit applications for the necessary insolvency proceedings. When requested by a creditor. During this period, preference will be given to the application made by the insolvent company itself, even if it is made at a later date. Nor will the debtor who has notified the court with jurisdiction to declare an insolvency proceeding of the initiation of negotiations with creditors have the duty to apply for a declaration of insolvency.
Finally, the period of expiry of any registration entry that may be cancelled due to the passage of time is suspended. E.x. a filing entry or a preventive seizure note. The calculation of the time limit will be resumed after the end of the state of alert.

During the alarm period

Meetings of the board of directors and any other collegiate governing body/administration may be held by videoconference. Even though this is not provided for in the statutes. It will be understood to be held at the domicile of the legal entity.

Likewise, the agreements of any collegiate body of government/administration may be adopted by means of a written vote and without a meeting. Provided that the president decides to do so or at least two of the members of the body in question request it.

After the alarm period

The reimbursement of contributions to cooperative members who leave during the state of alarm is extended. The term will be until six months have passed since the end of the alarm state.

If you need any clarification, please contact us.