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Santamarina + Steta, one of the “Best LGBTQ+ Workplaces 2024”

Santamarina + Steta receives for the second consecutive year the certification: Best Places to Work LGBTQ+ from the Human Rights Campaign Foundation

As part of its efforts to promote respect for the human rights of all employees of Santamarina + Steta, the firm continues to promote actions in support of LGBTQ+ diversity.

Thanks to the practices implemented to promote and adopt diversity, we are proud to announce that we have achieved the “Best Places to Work for LGBTQ+” certification from the Human Rights Campaign Foundation.

The HRC Equidad MX certification provides an indicator of organizations' commitment to LGBTQ+ labor inclusion in areas such as:

  • Non-discrimination policies / Equal employment opportunity
  • LGBTQ+ Organizational Competence
  • public engagement

At Santamarina + Steta we will continue working to ensure that our strategies are increasingly consistent and allow us to continue promoting diversity in the Firm through our Diversity, Equity and Inclusion (+DEI) committee, ensuring a work environment with the best practices in terms of inclusion and non-discrimination, as well as promoting and defending the human rights of all our collaborators and clients.

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Doing Business in Mexico 2023

Jorge Leon Orantes, Cesar Cruz y Jose Ramon Ayala participate in the guide of World Law Group “Doing Business in Mexico” 2023.

This guide answers a short list of questions and answers to help colleagues and clients learn more about how to do business successfully in various countries, and what key investment sectors and business opportunities are trending in the market today.

Mexico has established legal, accounting and regulatory systems consistent with international standards and has improved nine places since 2017 in Transparency International’s Corruption Perceptions Index. Together with its competitive labor and manufacturing costs, this makes it a favorable country for foreign investment. In this guide, our experts provide an overview of the advantages of doing business in Mexico.

The full document can be consulted here:

UPDATE Reform to the Securities Market Law and the Investment Funds Law SITE

Reform to the Securities Market Law and the Investment Funds Law

Executive Summary:

  • On April 24, 2023, the Second Committee on Finance and Public Credit and Legislative Studies presented the initiative to reform, add and repeal various provisions of the Securities Market Law and the Investment Funds Law.
  • On November 15, 2023, the plenary session of the Chamber of Deputies unanimously approved the Opinion. The publication of the decree for the entry into force of the reform is still pending.
  • The National Banking and Securities Commission must issue secondary provisions to complement the reform.

LEGISLATIVE STATE

On April 24, 2023, the members of the Second Finance and Public Credit and Legislative Studies Commission presented to the Honorable Chamber of Senators the initiative with a draft decree to reform, add to and repeal various provisions of the Securities Market Law (“LMV”) and the Investment Funds Law (“LFI”).

On April 28, 2023, in an ordinary session of the Honorable Chamber of Senators, the corresponding opinion that reforms, adds and repeals various provisions of the LMV and the LFI (the "Opinion") was unanimously approved, which was referred to the Honorable Chamber of Senators.

In an ordinary session on November 15, 2023, the plenary session of the H. Chamber of Deputies unanimously approved the Opinion.

Although the reform has already been approved by both chambers, the publication of the decree by the Federal Executive for the reform to come into force is still pending.

The National Banking and Securities Commission (“CNBV”) must issue secondary provisions to complement the reform.

REFORM TO THE SECURITIES MARKET LAW

  1. Simplified registration regime in the National Securities Registry (“RNV”)

The simplified registration process in the RNV is introduced to the LMV with the purpose of catalyzing the intermediate sector of the Mexican stock market, in particular encouraging small and medium-sized companies to participate in it.

Thus, the possibility arises for new issuers to issue securities covered by a differentiated regulation in accordance with general provisions issued by the CNBV. This simplified regime has the following distinguishing qualities:

Power of the CNBV to issue general provisions establishing the characteristics that companies wishing to participate in the simplified regime must comply with. Such regulations must be issued within a period of no more than one year from the entry into force of the decree in question.

More active participation by brokerage firms before and during the issuance of simplified issuers, as well as the structuring of their operations, which will not be able to participate simultaneously in a traditional issue.

Securities may only be placed with institutional and/or qualified investors, and public offering is optional for such securities covered under the simplified regime.

It is important to highlight that the current reform grants a new power to the CNBV to cancel the registration of securities in the RNV, other than shares or credit instruments that represent them, when the issuer is not up to date with its obligations to provide information.

  1. New schemes for public companies

The Stock Market Public Limited Companies (“SAB”) and Public Limited Companies for the Promotion of Stock Market Investment (“SAPIB”) will see a regulatory change in the provisions applicable to their structure and operation, particularly with a conviction to reinforce the participation of shareholders in the modification of the issue, transmission and scope of their shares, as well as to relax current restrictions, namely:

  • The obligation for SAPIBs to transform into SABs within 10 years or upon reaching the threshold of 250 million investment units is repealed.
  • The voting quorum against is modified from 5% to 20% so that SABs, through their shareholders' meeting, establish statutory measures to avoid hostile takeovers (poison pills). 
  • Whereas previously there was a 25% limit for issuing shares other than ordinary shares and with differentiated rights, now there is no limit and two or more series in circulation may be linked.
  • It will be sufficient to update the registration after the placement of shares for capital increases, dispensing with the need to request the registration of the new shares in the RNV.
  • Possibility for the Assembly to delegate to the Board of Directors the power to increase the share capital and modify the rules relating to the subscription of shares that correspond, even excluding the right of preference.
  • Principles of the Organization for Economic Cooperation and Development aimed at ESG (Environmental, Social and Governance) criteria are incorporated.
  1. New market segments through differentiated regulation

The financial authorities, as provided for by the transitional articles of the reform to which we refer, will issue a secondary and differentiated regulation that will apply to the issuers that are covered by the new simplified regime, in accordance with the following criteria:

  • Introduction of minimum requirements for the internal regulations of the Stock Exchanges to carry out simplified securities issues.
  • Simplified issuers will have a different regime regarding transparency obligations for public companies.
  • An individual and aggregate limit on simplified securities issued will be established.
  • Rules for the qualification of securities issued under the simplified regime.
  • Provisions relating to the Stock Exchange Calzas manuals for their simplified securities placement procedures.
  • Rules regarding the information and documentation required for the issuance of simplified securities, as well as the need to prepare a prospectus or information brochure, whether or not there is a public offering.

REFORM TO THE INVESTMENT FUNDS LAW

The reform to the LFI modifies the previous limited-purpose investment fund concept to introduce a new investment alternative called “Hedge Funds”. These new funds will have a flexible investment regime in terms of their liquidity, risk and diversification of assets to be invested, to the point of allowing them to invest in assets other than those established in their statutes and prospectuses according to market circumstances or the needs of the fund.

Investment fund operating companies and investment advisors authorized by the CNBV will be able to participate as founding partners and asset managers of the new Hedge Investment Funds. It is important to note that only institutional or qualified investors will be able to invest in these funds, and they will be able to hire price providers independent of the investment funds and founding partners.

UPDATE TAX INCENTIVES ACAPULCO SITE

Tax incentives for hurricane victims in Acapulco

Executive Summary:

  • On October 30, 2023, a decree was published granting tax benefits to taxpayers affected by Hurricane Otis, which devastated Acapulco on October 24, 2023. 
  • To access these tax benefits, taxpayers must have their tax domicile or establishment in the affected areas and have registered the corresponding notice in the RFC before October 24, 2023. 
  • These incentives are intended to alleviate the financial burden of those affected and support the rapid restoration of Acapulco and surrounding areas. 

On October 30, 2023, a decree was published granting tax benefits to taxpayers affected by Hurricane Otis, which devastated Acapulco on October 24, 2023. These incentives will be for the municipalities specified in the Natural Disaster Declaration, which will be issued by the corresponding authority, and which will surely include Acapulco and other impacted municipalities.

To access these tax benefits, taxpayers must have their tax domicile or establishment in the affected areas and have registered the corresponding notice in the RFC before October 24, 2023. Taxpayers whose tax domicile is not in these areas, but who have an establishment in them, will be able to obtain tax benefits only for operations related to that establishment. 

The benefits are as follows:

  1. Those affected will be able to apply an immediate deduction on investments in fixed assets, whether new or used, acquired from October to December 2023, allowing them to deduct up to 100% of the initial cost, without adhering to the deduction percentages established in the Income Tax Law (ISR), as long as they are used for the replacement or reconstruction of fixed assets.
  2. Salary withholdings and payments corresponding to value-added tax (VAT) and special tax on production and services (IEPS) for October, November and December 2023 can be made in three payments in January, February and March 2024, without generating updates, surcharges or fines.
  3. Taxpayers are exempt from making provisional ISR payments for October, November and December 2023.
  4. Taxpayers who continue to pay taxes under the fiscal incorporation regime (RIF), as well as those who pay ISR on income derived from technological platforms and who pay the tax definitively, will be allowed to do so no later than February 2024.
  5. Those in agricultural and primary sector activities with semi-annual provisional payments will be able to choose to submit monthly VAT returns for the second half of 2023.
  6. The process for VAT refunds requested until December 2023 will be accelerated, reducing the time by half.
  7. Taxpayers authorized to make partial payments of omitted contributions will be able to defer payments from October 2023, resuming them in February 2024. These taxpayers will not need to guarantee the tax interest. 
  8. Individuals with a home in the affected areas should not consider financial support from authorized donors as cumulative income, provided that it is used for the reconstruction of their home.
  9. Authorized donors who assist in the reconstruction of homes will be recognized as fulfilling their social purpose, regardless of their activity.

The main objective of these incentives is to alleviate the financial burden of those affected and to support the rapid restoration of Acapulco and surrounding areas. 

UPDATE Reforms to the Federal Law on Airport Rights WEBSITE

Reforms to the Federal Law on Airport Rights

Executive Summary:

  • On November 13, a Decree was published with reforms and additions to the Federal Rights Law that modify the rates to calculate the rights to be paid for the use, enjoyment or exploitation of federal airports, establishing a distinction between the holders of assignments and concessions.
  • According to the reforms and additions, for exactly the same use, enjoyment or exploitation of federal airports, concessionaires will have to pay 9% of their gross income for airport, complementary and commercial services, while parastatal entities will only pay 5%.
  • These reforms create an even bigger gap that not only discourages investment in the aeronautical industry, but also imposes new burdens and obstacles on those who are already in the industry and, of course, creates barriers to free competition.

On November 13, 2023, a Decree of reforms and additions to the Federal Rights Law was published in the Official Gazette of the Federation, among which the modification to the rates to calculate the rights to be paid for the use, enjoyment or exploitation of federal airports stands out, establishing a distinction between the holders of assignments and concessions.

It should be noted that, in accordance with the Airports Law, private individuals may only use, enjoy and operate federal airports if they obtain the corresponding concession title; while, for their part, parastatal entities must obtain an allocation to carry out such activities. In both cases, payment of fees is required, which are calculated from gross income from airport, complementary and commercial services.

Now, the difference between assignments and concessions is relevant for the purposes of the possible challenge to the reforms and additions to the Federal Rights Law, since it is common knowledge that the Executive has involved the Ministry of National Defense in the construction, operation, administration and maintenance of airports, and that, under the protection of an assignment title, it intends to begin operations with an airline through a majority state-owned company grouped with the sector coordinated by the Ministry of National Defense itself with the brands and commercial names of the defunct Mexicana de Aviación.

According to the reforms and additions, since they have exactly the same use, enjoyment or exploitation of federal airports, the concessionaires must pay 9% of their gross income for airport, complementary and commercial services, while the parastatal entities, through the allocation figure, will only pay 5% of the same. The above allows us to observe a clear inequality in the face of an analogous situation that, in our opinion, is unconstitutional and, therefore, can be challenged before the District Judges through an amparo trial.  

In this regard, it is important to note that the Airports Law includes the principles of equity and non-discrimination in the provision of airport, complementary and commercial services and, in turn, the aeronautical authority has the mandate under this same law to safeguard the efficiency, competitiveness and non-discrimination of services, as well as the profitability of projects and investments in airport matters. 

It should be noted that, from the outset, in order to obtain a concession, private individuals must comply with different requirements than those that government entities must comply with; which, while not illegal in itself, is a determining point in distinguishing that the reforms generate an even larger gap that not only discourages investment in the aeronautical industry, but also imposes new burdens and obstacles on those who are already in the industry and, of course, creates barriers to free competition, since the government must act as another participant in the market for airport, complementary and commercial services.

In recent years, the Federal Government has shown a clear intention to benefit government entities over private individuals, as has already happened with the Federal Electricity Commission (CFE) with the reforms to the Electricity Industry Law regarding the change in rates for electricity transmission and the modification of the reliability policies in renewable energies. On those occasions, private individuals have filed amparo lawsuits for the inequality created to their detriment, which have even reached the Supreme Court of Justice of the Nation, with favorable results.

Another point of interest is that only the income obtained from the payment of fees by individuals will be allocated to “to the Secretariats of National Defense and the Navy for the strengthening of the airport system under their coordination, through the federal public trusts without structure that are established for this purpose"That is, the assignees will pay a lower amount and, in addition, will receive all the resources obtained from the concessionaires, strengthening the participation of the government vis-à-vis private parties in the airport sector.

On the other hand, the amendments and additions to the Federal Law of Rights did not comply with the legislative process provided for in the Regulations of the Chamber of Deputies, since said additions and amendments were not part of the initiatives analyzed and ruled on by the Finance and Public Credit Commission of the Chamber. Much less were they included in the Opinion issued by the Commission itself, but were introduced, apparently, through a reservation, exceeding the specific purpose of the draft Decree by which various provisions of the Federal Law of Rights are amended, added to and repealed.

The draft Decree only provided for specific content modifications regarding the specific destination of the rights (article 18-A); establish the payment of fees in customs operations (article 49, section IV); ensure payment upon receipt of services in matters of economic competition (article 77); transfer of powers in favor of the Secretariat of Infrastructure, Communications and Transportation (articles 162 to 171-B); reduction of fees for registration of title or issuance of professional licenses (article 185); repeal of fees related to the authorization of commercial forest plantation on preferably forest lands (article 194-N); reform to the concept of transfer in matters of use, enjoyment or exploitation of national waters (article 223-Bis); replacement of terminology regarding the payment of fees for the use of the electric spectrum (article 239); adjustments regarding the concepts of wastewater discharges (articles 276 to 282-C); exemption from payment of fees for cultural assets owned by the Nation (article 288), and transitional provisions. In other words, the initiative did not include anything related to fees for the provision of airport, complementary and commercial services.

Thus, the reservation proposed and approved by the Chamber of Deputies, which resulted in the modification of articles 219, 220 and 221, and the addition of article 220-A and the Fourth Transitory Article of the Federal Rights Law, clearly exceeds the draft Decree presented by the Finance and Public Credit Committee, violating the legal nature of the reservation figure and, consequently, posing a probable violation of the legislative procedure that could be challenged by means of an amparo trial before a District Court on Administrative Matters.

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Lexology In-Depth: Privacy, Data Protection and Cybersecurity | Mexico

Lexology In-Depth: Privacy, Data Protection and Cybersecurity (formerly The Privacy, Data Protection and Cybersecurity Law Review) provides a comprehensive overview of the legal and regulatory regimes governing data privacy and security.

Focusing on recent developments, it covers key areas such as obligations of data processors; data subject rights; data transfers and localisation; best practices to minimise cyber risk; public and private enforcement; and an outlook for future developments.

Paola Morales, partner and leader of the practice area of Privacy and protection of personal data , and our associate Marcela Flores placeholder image participate in this publication to offer an overview of these issues from Mexico’s perspective.

Check out his contribution here: Privacy, Data Protection and Cybersecurity

Read the article here:

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The growing importance of ESG criteria in restructuring

Restructurings are, by their nature, both international and deeply internal. It is therefore essential to understand the commonalities, but also the differences, in law and in practice.

The third edition of The Guide to Restructuring – edited by Joy K. Gallup and Michael L. Fitzgerald of Baker McKenzie and published by Latin Lawyer– is designed to assist restructuring advisors and companies in negotiating complicated restructurings. This Guide provides expert information to help advisors, attorneys, corporate decision makers and judicial officials navigate this complex process.

Our partner Ricardo Orea, an expert in restructuring, and our associate Norma Álvarez, an expert in ESG issues, contribute to this Guide as authors of the article “The growing importance of ESG criteria in restructuring”. In this article, they explain how companies with solid environmental and social strategies will be the first to issue a new class of assets. Sustainability is thus acquiring an increasingly important role, with sustainable finance guiding the destination of investment funds to develop projects whose social and environmental purposes play a relevant role.

Check out the full guide here: The Guide to Restructuring – Third Edition

Read the article here:

DEAL ANNOUNCEMENT SANBORNS ARTS SITE 1

Sanborns Group delists from the BMV

Santamarina y Steta advised Grupo Sanborns, SAB de CV, in the process to cancel the registration in the National Securities Registry of the shares representing the capital stock of Grupo Sanborns, SA de CV, as well as its delisting from the Mexican Stock Exchange.

We appreciate the trust placed in us by Grupo Sanborns and Grupo Carso to support them in this important operation.

The Santamarina and Steta team involved in the operation was made up of: Sergio Chagoya, Diego Ostos, Elias Zaga, José Antonio López e Ines Buenrostro.

UPDATE Call for SITE Inspection Units

Call for Inspection Units interested in obtaining approval to assess compliance with NOM-014-ASEA-2022

Executive Summary:

  • On October 31, 2023, the Call for Proposals addressed to Inspection Units interested in obtaining approval to evaluate the conformity of the Mexican Official Standard NOM-014-ASEA-2022 was published.
  • The Call establishes the requirements necessary to obtain “Third Party Approval” in the hydrocarbon sector. 
  • Third Party Approval plays a crucial role in the protection of natural resources, especially in the context of construction and maintenance of wells for the exploration and extraction of hydrocarbons in sensitive areas such as agricultural and livestock areas and wastelands. 

On October 31, 2023, the Call for Proposals addressed to Inspection Units interested in obtaining approval to evaluate the conformity of the Mexican Official Standard NOM-014-ASEA-2022, specifications for environmental protection for the construction and maintenance of wells for the exploration and extraction of hydrocarbons in agricultural, livestock and wasteland areas, outside of protected natural areas or forest lands ("the Call"), was published in the Official Gazette of the Federation ("DOF"). 

This publication cancels and replaces NOM-115-SEMARNAT-2003, which establishes the environmental protection specifications that must be observed in drilling and maintenance activities of onshore oil wells for exploration and production in agricultural, livestock and wasteland areas, outside of protected natural areas or forest lands.

The Call establishes the necessary requirements to obtain the “Approval as a Third Party” in the hydrocarbon sector. It is important that the promoter submits a simple and legible copy of its current accreditation as an Inspection Unit Issued by an authorized Accreditation Entity, with scope in NOM-014-ASEA-2022.

The requirements are divided into general and technical, and details the criteria for accreditation, training and experience of staff, as well as the submission of applications online or in person. The Agency will evaluate the applications and may request additional information. In addition, it is noted that the interpretation of the requirements is the responsibility of the Agency. The formats and documents necessary for the process are provided online. 

Furthermore, the requirements for obtaining approval as a Third Party in the hydrocarbon sector establish a defined standard, and applicants must meet the requirements: training, experience and technical knowledge. The process of submitting and evaluating applications is clearly transparent, and the Agency has the authority to make final decisions on approval. 

The importance of the requirements to obtain approval as a Third Party in the hydrocarbon sector lies in several fundamental aspects, such as: 

  • Safety and Environmental Protection: In the hydrocarbon sector, it is critical to ensure the safety of operations and the protection of the environment. The requirements ensure that approved organizations and professionals have the necessary technical competence to evaluate and verify compliance with environmental regulations and standards, which contributes to avoiding accidents and minimizing negative environmental impacts.
  • Quality in Assessment: The requirements ensure that candidates for Technical Manager, Inspector and the Inspection Unit have the technical capacity and experience necessary to carry out assessments and verifications accurately and reliably. This ensures that the results are accurate and useful for decision-making in both safety and environmental matters.

Third Party Approval plays a crucial role in the protection of natural resources, especially in the context of construction and maintenance of wells for the exploration and extraction of hydrocarbons in sensitive areas such as agricultural and livestock areas and wastelands. 

The requirements ensure that thorough assessments are carried out and appropriate measures are taken to minimise negative impacts on the natural environment. These requirements contribute to a safer and more sustainable operation of the hydrocarbon sector.

Publication links:

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Cross-border work: Hiring workers who work from Mexico

Teleworking is here to stay. The dynamics of markets and work relationships require adapting to new trends to attract and retain talent. What emerged out of necessity more than three years ago has become a permanent modality that allows workers to optimize their work-life balance. Some companies have adopted it to optimize expenses or even attract specialized talent that might not be available in the place of origin, regardless of where it is located. Workers can carry out the work
remote service, a few blocks from the workplace, a few kilometers away, in another state or even in another country.

Following the pandemic, Mexico has worked to create more comprehensive regulations. A specific chapter on teleworking was added to the Federal Labor Law (“LFT”) and an Official Mexican Standard was recently published to guarantee health and safety conditions in teleworking (NOM-037-STPS-2023), with the aim of becoming more competitive in the market and providing certainty about the rules. However, the reaction was late and it has not evolved with the required dynamics. The NOM will come into force in December.

UPDATE combats the illicit fuel market SITE

Decree establishing measures to combat the illicit fuel market, related to the import of goods regulated by the Ministry of Energy

Executive Summary:

  • On October 23, 2023, the “Decree establishing measures to combat the illicit fuel market, related to the importation of goods regulated by the Ministry of Energy” was published.
  • By this Decree, the importation of goods corresponding to sixty-eight (68) tariff fractions of the General Import and Export Tax Law is temporarily restricted with the objective of combating the illicit fuel market and smuggling.
  • Holders of import permits for any of the 68 goods must notify the SENER Hydrocarbons Undersecretariat of the continuity of their operations.

On October 23, 2023, the “Decree establishing measures to combat the illicit fuel market, related to the importation of goods regulated by the Ministry of Energy (“SENER”)” was published in the Official Gazette of the Federation (“DOF”).

Through this Decree, the Executive seeks to eradicate and/or control certain practices that were occurring in the hydrocarbon processing industry in the sense of importing certain components that are used to mix with other hydrocarbons or petroleum products to produce low-quality gasoline and/or diesel that will be marketed illegally (another form of huachicol), which affects the quality of the product received by the final consumer and represents serious risks to the environment and the health and safety of the same consumer.   

Contents of the Decree:

  • The importation of goods corresponding to sixty-eight (68) tariff fractions of the General Import and Export Tax Law in force (the "TIGIE"), detailed in the Sole Annex of this Decree, is temporarily restricted, with the objective of combating the illicit fuel market and smuggling, to avoid imminent damage to health and the environment, the violation of the health and safety of the population surrounding fuel handling centers, and the negative impact on private vehicles and public transportation.
  • Those interested in importing any merchandise included in the Single Annex must request and prove, before the Hydrocarbons Undersecretariat of SENER, the volume and destination of the merchandise in question, as well as the production process and the purpose of the development or execution, to corroborate that said import is a legal activity, and that it does not contravene the Decree.

The Single Annex is available for consultation at: https://sidof.segob.gob.mx/notas/5706285 

Implications of the Decree:

It is of utmost importance to note that the holders of import permits for any of the 68 goods mentioned in the Single Annex must notify, within a maximum period of 30 business days from the entry into force of the Decree, the Undersecretariat of Hydrocarbons of SENER, by means of a simple free writing or communication, the continuity of their operations and, in particular, corroborate that the products destined for said import conform to a volume and destination that are imperative for their production process.

It should be noted that, in the absence of proper accreditation of these elements, permit holders will not be able to continue the activities covered by their import permit.

Once the notification has been received, SENER will analyze the information provided by the applicant or permit holder and will decide, within a maximum period of 15 business days, whether said permit holder may or may not import the goods subject to the Decree, which represents a significant change in the way in which hydrocarbons will be imported and marketed. 

It is also important to consider the risk involved in implementing this measure, since SENER has not been efficient in resolving the procedures that fall within its jurisdiction during this Administration.

Worse still, in the case of permit holders whose import permit title is valid, we would be facing a flagrant violation of the constitutional guarantees of the governed, who could be affected by a retroactive provision that violates, among others, the principle of legality.

Another risk we observe regarding the implementation of the Decree is to consider that, within a period of 15 or 30 days, the Ministry of Economy, the Ministry of the Environment and Natural Resources, the Ministry of Infrastructure, Communications and Transportation, the Tax Administration Service, the National Customs Agency of Mexico, the Energy Regulatory Commission, the Agency for Security, Energy and Environment, and/or the Federal Attorney General's Office for Environmental Protection, according to the scope of their respective powers, referred to in Articles Three and Five of the Decree, will coordinate to make adjustments to the records, registers, systems and platforms, physical or electronic, relating to the import and traceability of goods in accordance with the Decree.

In addition to said Decree, on October 25, 2023, the “Guide to comply with the first article of the Decree (the “Guide”)” was published on the SENER portal so that permit holders can obtain the corresponding authorizations from the SENER Hydrocarbons Undersecretariat. 

Guide available for consultation at: https://www.gob.mx/sener/articulos/decreto-por-el-que-se-establecen-medidas-para-el-combate-al-mercado-ilicito-de-combustibles 

It is important to consider that both the Decree and the Guide could represent a risk in terms of the investments made by those permit holders who import the goods provided for in the Sole Annex of the Decree, since not in all cases will they prove that the total volume and final destination of the same constitutes a fundamental element for their production process.

Publication links:

UPDATE REFORM TO THE GENERAL LAW OF COMMERCIAL COMPANIES IN THE FIELD OF ELECTRONIC ASSEMBLIES SITE

Reform of the General Law of Commercial Companies regarding electronic assemblies

Executive Summary

  • The bylaws of commercial companies may provide for the holding of meetings in person or through the use of electronic, optical or other technological means, allowing the participation of all or part of the attendees at the meeting in any way.
  • The bylaws of commercial companies may provide that the sessions of the administrative body may be carried out by using electronic, optical or any other technological means, as if they were face-to-face sessions, both having the same validity.
  • In any case, whether in person or through the use of electronic, optical or any other technological means, all meetings and sessions of the administrative bodies must have mechanisms or measures that allow access, accreditation of the identity of those attending and, if applicable, accreditation of the direction of their vote.

On October 20, 2023, the decree amending and adding various provisions to the General Law of Commercial Companies (“LGSM”) (the “Decree”) was published in the Official Gazette of the Federation (“DOF”). These reforms and additions to the LGSM introduced the possibility for commercial companies to hold all types of meetings and sessions of the administrative body through the use of electronic, optical or any other technological means.

The holding of meetings and sessions of the governing body, through the use of electronic, optical or any other technological means, must be provided for in the company's bylaws.

With the collaboration of specialist lawyers, our firm offers the possibility of supporting commercial companies affected by the aforementioned reform to integrate this new way of holding meetings and sessions of the administrative body into their daily operations, considering specific aspects derived from the analysis and study of each particular case, and developing a strategy. for each situation.