Publication Type
Blog Post
Version
publishedVersion
Publication Date
7-2019
Abstract
The Spanish Ministry of Economy has recently released a new bill that, among other aspects, proposes an amendment of the Spanish Companies Act to allow listed companies to adopt loyalty shares. These shares will confer additional voting rights to those shareholders staying in the corporation for at least two years. For that purpose, the company only needs to approve the adoption of loyalty shares by a qualified majority. Therefore, following the Italian (rather than the French) model of loyalty shares, the adoption of loyalty shares in Spain will be done as an opt-in rule.
Keywords
Controlling shareholders, Corporate governance, Entrenchment, Loyalty shares, Short-termism
Discipline
Business Organizations Law
Research Areas
Corporate, Finance and Securities Law
Publisher
Taylor & Francis (Routledge): SSH Titles - no Open Select
Citation
Aurelio GURREA-MARTINEZ.
The case against the implementation of loyalty shares in Spain. (2019).
Available at: https://ink.library.smu.edu.sg/sol_research/3708
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.