EL AUTOCONTRATO EN LA FUNDACIÓN DE SOCIEDADES.

Abstract

The Directorate-General of Registries and Notarial Affairs' decision of 7 July 2011 concerns an appeal against a registrar's decision on self-hiring. In the case at issue, an individual took part in the organization of Company A in his own name and right as a shareholder and in his capacity as the director and representative of another company, Company B, which was also a shareholder in Company A. It also so happened that the said sole director of Company B appointed himself sole director of Company A as well. The registrar who scrutinized the application for registration decided that this situation constituted an instance of self-hiring. The Directorate-General revoked the registrar's note, finding that there was no invalid self-hiring contract in this case, and that the case had to be assessed on the basis of whether there were or were not any conflicts of interests.