The Superintendence of Companies, Values and Insurance informed its users of the issuance of the Ecuadorian Good Corporate Governance Standards, a document issued through Resolution No. SCVS-INC-DNCDN-2020-0013 of September 1, 2020.
The new regulation is a tool that will allow companies to adopt governance principles to professionalize their business activities, since it contains a set of fundamental recommendations to establish ethical guidelines and guide decision-making in Ecuadorian companies, and these guidelines will also help directly in the control of processes and risks in order to mitigate internal and external acts of corruption of the companies and that will serve to make their operational activities transparent.
The regulation is aimed at commercial companies in general, who may apply the provisions totally or partially, if they consider it pertinent, in their bylaws, regulations that establish the administration or internal regulations documents. Once this inclusion is made, its application will be mandatory.
The document includes seven chapters that establish recommendations to be applied on the rights of Shareholders and their equitable treatment; General Meeting or Assembly of Shareholders, powers, regulations, calls, conflicts of interest, voting rules; the Board of Directors, its functions, powers, responsibilities, classes, size, structure; Family government, assembly, council, protocols; Control architecture, systems, responsibilities; among other important data.