Escrito por:
1. Holding of Annual General Meeting
In accordance with the Ecuadorian Companies Law, the Annual General Meeting must be held no later than March 31 of each year.
During this meeting, shareholders or partners must review and resolve, among other matters, the following:
- The financial statements for the previous fiscal year.
- The management reports submitted by the administrators and directors, when applicable.
- The reports of internal auditors or supervisory bodies, when their existence has been provided for in the company’s bylaws.
- The external audit reports, when the company is required to undergo an external audit.
- The distribution of the financial results generated during the previous fiscal year.
- The appointment of the external auditor for the current fiscal year, when applicable.
2. Compliance with the Superintendence of Companies, Securities and Insurance
Companies must submit to the Superintendence of Companies, Securities and Insurance (SCVS), no later than April 30 of each year, the information referred to in the previous section, as well as the updated list of administrators, legal representatives, and partners or shareholders of the company.
If the Annual General Meeting has not approved the financial statements within such period, the legal representative may submit them to the SCVS under his or her responsibility, accompanied by a statement indicating that the meeting has not been held or that, although held, it has not yet issued a resolution regarding the financial statements.
3. Compliance by Branches of Foreign Companies
The obligation to submit financial statements to the SCVS also applies to branches of foreign companies domiciled in Ecuador.
4. Liability for Non-Compliance
Failure to submit the required information to the SCVS may result in financial penalties for the administrators, which may include fines ranging from one to twelve unified basic salaries. Additionally, such non-compliance will be reflected in the Certificate of Compliance with Corporate Obligations, a document commonly required for various corporate, contractual, and financial procedures.
© TobarZVS
This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.