Introduction to management companies of closed-ended collective investment entities: honorability of directors and delegates and suitability of shareholders

Introduction to management companies of closed-ended collective investment entities: honorability of directors and delegates and suitability of shareholders

Abstract:

The Law 22/2014 has amended the regulation on private equity and venture capital entities: management companies of private equity and venture capital entities have been replaced by management companies of closed-ended collective investment entities (“SGEIC” in Spanish). This article introduces the legal framework for this new type of investment vehicle: in particular, it details the legal form that the SGEIC must take and the requirements that must be formalized before regulatory institutions. Furthermore, it also analyzes the honorability of the members of the Board of Directors and the delegates, as well as the suitability of significant shareholders.

Keywords: Management companies of closed-ended collective investment entities; SGEIC; private equity and venture capital; Law 22/2014.