Who is Empowered to Suspend or Revoke a Call for a Meeting of Members or Shareholders in the Event of the Covid-19 Outbreak?
As of 30 March, the population resident in Mexico was asked to comply with a home guard in case of non-essential activities, our authorities indicated that, for no reason, this measure should be interpreted as mandatory, but as a restriction on voluntary mobility.
Due to the accelerated growth of contagion, after 17 May, some municipalities with less impact will begin the gradual resumption of non-essential activities; while in the rest of the country the measures of social distancing will be lifted, tentatively, on May 30.
In this situation, it is important that the members or shareholders of a Company should be aware of the possibility of suspending or revoking a convocation of the Assembly, due to the impediment of holding a face-to-face meeting; The General Law on Commercial Companies does not provide for this aspect and, generally speaking, the articles of association do not.
However, the administrative body and the supervisory body are empowered to issue convocations of the Assembly and are therefore also empowered to suspend or revoke them. Regardless of the above, the Shareholders’ Meeting, being the supreme organ of the Society, has the power to revoke or suspend any convocation of assembly made by any governing body of the Society.
In Bandala | Díaz | García we care about our Clients before the present outbreak of COVID-19, advising them on Corporate matters to avoid any future risk or controversy, so, in case of requiring the revocation or suspension of a Assembly call or, where appropriate, to require the holding of an Assembly as a matter of urgency, we are committed to seeking appropriate options which comply with the health measures laid down by the competent authorities.