THE PREFERENTIAL ALLOTMENT RIGHT OF SHARES AND OTHER EQUITY INTERESTS

Abstract

This paper aims to raising some reflections concerning the preferential allotment right of shares and other equity interests, in the context of an after marriage community property separation. To do so, it shall be indeed required to justify the applicability of such a right for this object, together with those conditions under which the right happens to exist and therefore, could be exercised. Nevertheless, in order to reach this goal, it will be certainly needed to refer to certain broader issues that must be previously addressed, since they shall lead us to the kind of approach and solutions we can take in order to handle the initially raised problems. In these regards, the first part of the document focuses on the concept, purpose, subjective requirements and object of the preferential allotment as included in a. 1406, No. 2 del Código Civil (Spanish Civil Code) while on the second part, the focus shifts towards the preferential allotment of shares and/or other equity interests, stating the difference among the various types of societies legal forms.