Illegal distribution of dividends. Spain
The dividend distribution agreement
is an act of equity disposal in that it recognizes a right in favor of the
partners, and carries a reduction in the
assest of the company. It may be subject
to revision if it is adopted two years
before the bankruptcy declaration
and it lacks justification from the perspective of the interests protected in bankruptcy
law. TS decision no. 428/2014, of 24July.
Dividends of a company subsequently
declared bankrupt may constitute an act of disposal of equity harmful to the company:
- if it was agreed without due justification, thus violating Company Law ...
- if the distribution agreements was "irregular" because it was based entirely or partially in nonexistent net benefits,
- or because it was agreed without respecting legal and statutory rules on reserves, or without due account of the provisions of art. TRLSA 213 (current art. 273 TRLSC).