Plenary Ends First Debate on Company Law
21 agosto 2020

On August 13, the Plenary of the National Assembly processed the first debate on the draft bill for the Modernization Law to the Companies Law, prepared by the Economic Development Committee. After the first debate, the Committee is charged with collecting the observations made in the plenary and incorporate them into the report for the second debate.

The ruling party assemblyman Esteban Albornoz indicated that the draft bill aims to establish a modern regulatory framework for the country’s corporate sector, simplify the procedures carried out in different instances, and support the reactivation of the productive sector to help companies can adapt to the new conditions demanded by society and the economy.

Regarding corporate modernization, the draft bill eliminates third-party opposition procedures, establishes universal telematic boards, and streamlines dissolution processes, among other issues.

The Economic Development Committee emphasized that the draft is urgent and necessary, since it lowers costs, supports the country’s productive sector, modernizes institutions, makes processes more flexible and promotes investment.