The Superintendence of Companies, Securities and Insurance, issued Resolution No. SCVS-INPAI-2020-00002715 (hereinafter "Resolution") dated March 16, 2020, in which was agreed an extension of 30 days from the expiration of the original deadline for submission of information required by Article 20 of the Law of Companies, in other words, the information may be sent to the controlling entity until May 31, 2020.
It is important to consider that:
- The Resolution does not expressly grant an extension for the holding of the Companies' Ordinary General Shareholders' Meeting, which must be held once a year within the three months after the end of the company's fiscal year, i.e. until March 31 of each year, i.e. it is recommended that the Company's bylaws be analyzed to see the possibility of holding the Ordinary General Shareholders' Meeting by electronic means.
- Furthermore, the reports detailed above must be put under consideration to the shareholders via e-mail for their knowledge at least with fifteen days in advance to the date the meeting will be held
- In the event of an apparent impossibility to hold the General Shareholders' Meeting due to the state of health emergency worldwide, and due to the existence of a force majeure situation, we have a legal justification for not holding the Ordinary Shareholders' Meeting within the first quarter of this year, hence an extension could be requested to the control entity.
- The General Shareholders' Meeting must be qualified as Ordinary, even though it was held outside the term provided by law considering that its purpose prevails.
In case you require additional information in this regard, or the analysis of a particular case, please do not hesitate to contact us.