REFORM TO THE GENERAL CORPORATIONS LAW

​By a reform made to the General Corporations Law the companies must file an electronic report to the Secretary of Economy with the shareholders personal information and capital movements. 

According to the reform published recently in the Official Gazette, no later than December a report indicating the name and address of each shareholder of the company as well as the hold stake in its capital must be sent by corporations to the Secretary of Economy. 

Furthermore, any transfers of assets must be informed by the company using this procedure in order to comply with the law.

This is an effective way to create trust and legal certainty about who truly holds the shares of a company; as a law firm we have experienced and solve major situations which involve doubts about who duly possess a certain stock capital, this is mostly occasioned  by shareholders who try to take illegal advantages of the lack of corporate controls through transfer’s simulations.

It is important to comply not just with the requirement hereinbefore mentioned but also is necessary the shareholder ledger that records the property, as a result it is possible to protect in a high level the stock capital of the companies. 

Notwithstanding the fact that the government retains all that personal information can lead to distrust,  the reform obligate to handle it as confidential unless it would be required by a judicial order.