The eagerness of the Government to introduce reforms in business matters has manifested itself once again with a draft for a “Law for the Improvement of the Corporate Governance of Companies”.
The areas that the law intends to reform include general meeting of shareholders, conflicts of interest, the management of the company, votes, appeals against company agreements and the salaries of the directors, among others.
However, the most relevant modifications relate to three topics: shareholders will approve the policy of remuneration at least every three years, the capital necessary to exercise the rights of minority shareholders is reduced from 5% to 3% and the post of administrator should be held for a maximum period of four years, instead of the current six.
It remains to be see how the subsequent parliamentary processing of the draft will affect it´s content.Article by Mark Athos Franklin, native English lawyer at the Rodriguez Bernal legal practice. For more articles on business law orfor more articles in English, click the links provided. Antonio Pedro Rodríguez Bernal Lawyer and experienced professional in business law. He has participated continuously in company operations for the last 15 years of his legal career, assisting business owners and the self-employed from many different countries and nationalities. For more information on the services our firm provides in business matters, visit our web page or contact us directly. Email: email@example.com