Colombia Update: Ministry of Commerce, Industry and Tourism modified Decree

Hypothesis

The Ministry of Commerce, Industry and Tourism (the “Ministry”) enacted Decree 1378 of October 28, 2021 (the “Decree”) by means of which “it is modified article 2.2.1.18.2 of Decree 1074, 2015, Sole Regulatory Decree of the Tourism, Industry and Commerce Sector”.

The Decree establishes, among other things, the following:

1.Regarding the dissolution event for not complying with the going concern hypothesis, the managers must be continuously monitoring the financial statements and when identifying an equity deterioration and bankruptcy risk must immediately informed and provide the support documents to the highest corporate body for the corresponding decisions to be taken.

2.The managers must establish the existence of equity deterioration and bankruptcy risk pursuant to the financial reasons according to their business model and sector in which the corporate purpose is developed.

In the following link you will find the Decree 1378 of October 28, 2021

By Santiago Gutiérrez & Raúl Vargas, LLOREDA CAMACHO & CO, Colombia, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact colombia@transatlanticlaw.com 

Disclaimer: Transatlantic Law International Limited is a UK registered limited liability company providing international business and legal solutions through its own resources and the expertise of over 105 affiliated independent law firms in over 95 countries worldwide. This article is for background information only and provided in the context of the applicable law when published and does not constitute legal advice and cannot be relied on as such for any matter. Legal advice may be provided subject to the retention of Transatlantic Law International Limited’s services and its governing terms and conditions of service. Transatlantic Law International Limited, based at 42 Brook Street, London W1K 5DB, United Kingdom, is registered with Companies House, Reg Nr. 361484, with its registered address at 83 Cambridge Street, London SW1V 4PS, United Kingdom