Dear clients and friends,
We are hereby pleased to inform you that, according to the obligations set upon Salvadoran legal entities and the rules contained in Article 223 of the Commercial Code, companies must carry out an ORDINARY GENERAL SHAREHOLDERS’ MEETING within five months following the close of the fiscal year, which –besides other matters included in the agenda– will consider the following issues:1. The report from the Board of Directors or the Sole Administrator, the general balance, the statement of results, the statement of changes in equity, and the external auditor’s report, in order to approve or disapprove the first four and take any measures it deems necessary.
2. The appointment and dismissal of the administrators and the external and fiscal auditors, as may be the case. In the case of appointments of administrators and of the external and fiscal auditors, the Secretary of the general ordinary meeting, upon issuing certificate of the corresponding record, must expressly assert the acceptance of those elected to such offices. In any case, certificates of records containing appointment or dismissal of administrators or of external or fiscal auditors must be presented for deposit before the Commercial Registry and the appointment of Fiscal Auditor must be presented within ten business days from the respective agreement.
3.The fees corresponding to administrators and to external and fiscal auditors, when not set in the social contract.
4. The application of financial results.
Therefore, the last day to carry out the meeting and discuss the issues mentioned above is May 31st of the current year.
In accordance with Legislative Decree No. 61 of June 15th, 2021, published in the Official Bulletin No. 117 Vol. No. 431 of June 21st, 2021, in effect from its publication up to May 31st, 2023, temporary provisions were enacted allowing meetings to be carried out by videoconference or other technological means.
The rules state that General Shareholders’ Meetings of all types of legal entities may be carried out through videoconference or other technological means which guarantee safety and confidentiality measures for the participation of its members, applying the provisions of Article 258, sections two and three, of the Commercial Code.
We remind you that we are at your service for the corresponding legal counseling and necessary arrangements for carrying out the meeting in question.
For any other legal need, the professionals in our corporate practice group are at your disposal. For more information, you may contact us through our telephone numbers detailed at our website www.mayora-mayora.com.
Mayora & Mayora, S.C.
