Company administration in Spain
represents a legal procedure through which a company that has become insolvent
can rehabilitate its current condition. In Spain
, the company administration procedure
is performed following the regulations established under the Insolvency Act
. Our team of lawyers in Spain
can offer legal advice to the businessmen who are involved in an insolvency case
What is company administration in Spain?
The main purpose of the company administration procedure in Spain
is to protect the respective insolvent company
from its creditors
. During the company administration
, the main purpose is to reorganize the business
to such an extent that it can become operational again. This could also lead to starting the restructuring procedure
is performed not only for the benefit of the business, but also for the benefit of the creditors
, who can obtain through this method a better result than in the case of starting the liquidation procedure
The company administration in Spain
can provide several advantages. It implies lower costs and the procedure can be started by both the representatives of the company, as well as the company’s creditors
. Our team of attorneys in Spain
can offer more details on the legal aspects related to this procedure.
Administration in Spain
During the company administration procedure in Spain, a judge will establish an insolvency administrator, who will have the main purpose of administering the company’s assets and liabilities.
In case the debtor
files for voluntary insolvency proceedings
, the company will enter the company administration
and will receive an insolvency administrator
. However, the debtor
will still have the right to perform activities related to the business’ management
In the situation in which the creditor has started the procedure, the debtor will no longer be able to exercise his or her rights related to the company’s management. The person will be suspended from activity and the function will be performed by an insolvency administrator.
Businessmen interested in receiving more details on the procedure applicable here in case of insolvency
are invited to contact our law firm in Spain