Opposition to The Holding of General Assemblies in Time of the Pandemic by Covid-19

It is a reality that our authorities have not presented strategies to confront this pandemic by COVID-19, which is why, faced with the declaration of National Health Emergency, Some companies, entrepreneurs and Smes have chosen to interrupt the fulfilment of their obligations in the areas of labour, taxation, corporate, etc., which could generate risks and future disputes affecting the economy in Mexico.

By virtue of the foregoing, it is substantial that you consider that the Government has not declared any extension or suspension of the corporate obligations that you must perform as a partner or shareholder of a Corporation in Mexico, so, through this publication we will attend to an aspect that some of our Clients have asked us to clarify:

CAN I OBJECT TO HOLDING AN ASSEMBLY IN A TIME OF PANDEMIC?

The General Law on Commercial Companies does not provide for the right of shareholders to object to the holding of an Assembly. In addition, it establishes that resolutions legally approved by the Assembly are binding on all members or shareholders, including those who are absent or dissenting. However, it grants members or shareholders who represent 25% of the share capital of the Company the right to judicially oppose the resolutions of the Assemblies, the above, within 15 days after the date of conclusion of the respective Assembly.

In Bandala | Díaz | García we care about providing full legal consulting to our clients and the general public. In this way, we guide them in the measures they must implement in this situation, which will always be in line with their business needs.

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