Committee Passes Partial Veto Presented by Executive on Companies Law
29 noviembre 2019

On November 27, the Economic Development Committee adopted the report which will be debated at the Plenary for the partial veto of the bill to reform the Companies Law. The text is ready to be discussed by the Assembly. 

However, the Executive Branch has objected, saying that the law exonerates companies winding up their operations from paying Income Tax and municipal licenses and stating that this section is conceptually mistaken as it exceeds the powers of the Assembly and that this type of tax regulations is the responsibility of the Executive.  

The text passed by the Assembly incorporates an article enabling the possibility of splits or mergers between multiple companies and establishing the conditions to be met for that purpose. The Executive also made a comment on this section, indicating that this should be considered as an independent article covering all the processes indicated, in order to avoid errors when applying the norm.