{"title":"Evolutionary Developments in Spanish Corporate Law","authors":"Fatih Buğra Erdem","doi":"10.54648/eucl2022002","DOIUrl":null,"url":null,"abstract":"It is very common to encounter commercial law regulations designed towards encouraging shareholders to make long-term investments in different jurisdictions in response to the issue of short-termism. Until a few months ago, EU Shareholder Rights Directive was seen as the most effective step, which was put into effect as of 3 September 2020, as regards the encouragement of long-term shareholder engagement. However, when the latest developments are considered, a new era has just started in Spain with Law No. 5/2021, which entered into force on 3 May 2021, regarding the duties and responsibilities of managers to increase shareholders’ long-term loyalty to listed companies by complying with the modifications envisaged by Directive 2017/828. This study, in light of what has been covered hitherto, examines the amendments (reform) brought by Law No. 5/2021 as well as evaluating its possible effects on the functioning of company law.\nSpanish Corporate Law Reform, Short-Termism, Shareholder Activism","PeriodicalId":11843,"journal":{"name":"European Company Law","volume":null,"pages":null},"PeriodicalIF":0.5000,"publicationDate":"2022-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"European Company Law","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.54648/eucl2022002","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"LAW","Score":null,"Total":0}
引用次数: 0
Abstract
It is very common to encounter commercial law regulations designed towards encouraging shareholders to make long-term investments in different jurisdictions in response to the issue of short-termism. Until a few months ago, EU Shareholder Rights Directive was seen as the most effective step, which was put into effect as of 3 September 2020, as regards the encouragement of long-term shareholder engagement. However, when the latest developments are considered, a new era has just started in Spain with Law No. 5/2021, which entered into force on 3 May 2021, regarding the duties and responsibilities of managers to increase shareholders’ long-term loyalty to listed companies by complying with the modifications envisaged by Directive 2017/828. This study, in light of what has been covered hitherto, examines the amendments (reform) brought by Law No. 5/2021 as well as evaluating its possible effects on the functioning of company law.
Spanish Corporate Law Reform, Short-Termism, Shareholder Activism