Treasury shares in Spanish start-up act - Abstract Nº:2 / 2024

Treasury shares in Spanish start-up act

Abstract:

The Startups Law incorporates a new regime for treasury stock generated by limited companies that have the status of startup, provided that the purpose is to implement a compensation plan for employees and directors. With this, the aim is that startups can attract and retain talent by involving those who have a key profile in the company and the business. This new specific treasury stock regime for startups has a series of requirements and conditions to be applied, highlighting also the penalties in case of infringement.

This paper analyzes the particularities of treasury stock in startups and examines the objectives and requirements introduced by Law 28/2022 in contrast with the general treasury stock regime outlined in the Companies Act.

Keywords: Treasury stock, startups, derivative acquisition, venture capital, Law 28/2022, stock options