Impact of “Covid – 19” on Corporate Matters

On March 31, 2020, our health authorities declared Mexico in a health emergency, noting that this measure is preventive and seeks to prevent Mexico from finding itself in an uncontrollable position like the one that other countries are living because of the pandemic.

In the coming days, some companies, branches, businesses, Smes and other establishments, in order to comply with the recommendations of our health authorities, will have to close their facilities, as well as to avoid face-to-face relations in the provision of services and their operativity, and should therefore implement new means of contact and compliance with obligations.

It is important to note that Mexican companies are required to hold an annual shareholders’ meeting at their registered office no later than April, at which time prior financial years must be approved; the designation or ratification of the administrative and supervisory body of the Company, among other matters. Let us remember that the supreme organ of each Society is the General Assembly of Shareholders.

WHAT SHOULD I DO IF I CANNOT MEET MY PARTNERS?

The General Law of Commercial Companies (LGSM), in view of the impossibility of the Shareholders or Shareholders meeting at the registered office of the Company to hold the Annual Shareholders’ Meeting establishes the option of approving the agreements through Unanimous Shareholder Resolutions (RUA), even when our Articles of Association do not provide for this, for this purpose, the agreements must be deemed to have been approved unanimously by the votes of the shareholders representing all the shares or, where appropriate, the special category of voting shares.

Warning!

To avoid any risk, it is necessary to obtain the appropriate legal consultancy to comply with the formalities of the Unanimous Resolutions of Shareholders.

In Bandala | Díaz | García we are at your disposal in order to provide you with our corporate legal services and we assure you that the Unanimous Resolutions of Shareholders that we elaborate in your favor, shall have the same validity as if they had been approved at the Shareholders’ General Meeting.

We appreciate your interest in our content, we invite you to implement the necessary preventive measures to prevent the contagion of COVID-19.