10 / 24 / 23
Virtual Shareholders’ Meetings and Board of Directors’ Meetings – Amendment to the General Law of Business Corporations
MEXICO CITY, MEXICO, October 24th, 2023 – On October 20, 2023, the “Decree amending several provisions of the General Law of Business Corporations” was published in the Mexican Federal Official Gazette”.
https://www.dof.gob.mx/nota_detalle.php?codigo=5706076&fecha=20/10/2023#gsc.tab=0
The decree amends certain articles of the General Law of Business Corporations allowing for commercial entities to hold virtual meetings of shareholders and of directors through using any electronic or optical means, or any other technology to facilitate, speed up and grant full legal effects to such meetings.
For entities that are already incorporated to be able to hold virtual meetings, it will be necessary to amend the bylaws of the entity to provide for:
- The possibility to hold virtual meetings of shareholders and of the board of directors through electronic means.
- The specific regulations to call for such meetings, including the publication in the electronic system established by the Ministry of Economy, including the platform which will be used to hold the meeting, the access information to the platform, any other instructions that allow the attendees to access the platform and the day and time of the meeting.
- The rules for holding the virtual meetings, the manner in which the quorum for attendance and voting will be determined, how the counting of votes will take place, for the meetings and resolutions adopted thereby are valid and enforceable.
The Decree went into effect as of the day following its publication.
In case you require legal advice for the implementation of the above amendment, SMPS will help you in carrying out the legal process in the most efficient manner allowing you to hold corporate virtual meetings.