The accounting moratorium was introduced as one of several measures aimed at mitigating the consequences of the COVID-19 pandemic. This measure, which was extended several times, allowed company directors to disregard losses from the 2020 and 2021 financial years when determining whether there was a legal reason for dissolution due to financial imbalance.
By the end of 2024, this moratorium was extended again through Royal Decree-Law 9/2024, dated December 23. However, the law was later repealed after it failed to be ratified by the Spanish Congress of Deputies. A new regulation, Royal Decree-Law 1/2025, issued on January 28, does not extend the moratorium. This officially ends the accounting moratorium and requires companies to address the losses incurred during 2020 and 2021.
What does the end of the accounting moratorium mean for companies?
Company directors must promptly, and no later than the date of financial reporting, assess the losses from 2020 and 2021 to determine whether a legal reason for dissolution exists.
What should be done if there’s a cause for dissolution, and what are the consequences of inaction?
In these cases, company directors must comply with the Capital Companies Act by initiating bankruptcy proceedings, if applicable, or calling a general meeting to resolve the issue. If necessary, the appropriate dissolution agreement must be approved.
It’s important to highlight that failing to fulfill these legal obligations can result in significant personal liability for directors, who could be held jointly responsible for any debts incurred after the legal cause for dissolution arises.
At addwill, we offer specialized services to help businesses manage the end of this accounting moratorium and its consequences. Feel free to contact our commercial law experts by phone at 934 875 200, via email at comunicacio@addwill.eu, or by clicking here.