At Tecem Abogados, we understand the importance of keeping your company in compliance with legal regulations and adapted to the needs of the market. If you are considering changing the corporate purpose of your company in Malaga, Benalmadena or anywhere on the Costa del Sol, it is essential to know the legal implications and how this decision may affect your business.

Implications for Society

Modifying the corporate purpose, either to add or eliminate activities, may have important consequences for the partners. The partners who do not vote in favor of the modification and those with non-voting participations have the right to withdraw from the company, collecting the value of their participation. For this to occur, the amendment must be considered substantial. Substantial modification is understood as: -Eliminating essential activities, leaving other secondary activities. -Adding activities that imply a significant change in the destination of the company’s assets, different from the one originally foreseen in the bylaws. On the other hand, it is not considered a substantial modification to add activities similar to those already carried out by the company. It is important to note that if the corporate name of your company is related to a specific activity, it must be consistent with the new corporate purpose. If this is not the case, it will also be necessary to modify the corporate name to avoid legal problems.

Implications for Contracts with Third Parties

In addition to the implications for the partners, a change in the corporate purpose may affect existing contracts with third parties. It is essential to review and adapt key contracts, such as liability insurance, to include the new activities or eliminate unnecessary coverage. If the company operates in leased premises, it is essential to verify that the lease agreement allows for the development of the new activity. In many cases, the contract establishes which activities the lessee may carry out and prohibits others. If necessary, it will be essential to obtain the lessor’s authorization to carry out the new activity.

Are you thinking about changing the corporate purpose of your company?

If you are located in Malaga, Benalmadena or the Costa del Sol and are considering changing the corporate purpose of your company, at Tecem Abogados we can advise you every step of the way. Our experts will help you understand the legal implications and the changes you will need to implement, ensuring that your company complies with all current regulations. Contact us today for a personalized consultation and ensure that the modification of your company’s corporate purpose is carried out efficiently and smoothly.