Bustamante Fabara
  August 31, 2015 - Ecuador

Instructive for the Monitoring and EX Post Control of the Corporate, Securities, and Insurances Superintendence
  by Josemaria Bustamante, Alejandro PĂ©rez Arellano

With the enactment in May 2014 of the Organic Law for Strengthening and Optimization of the Corporate and Securities Sectors (OLSOCSS), the role of the Corporate, Securities, and Insurances Superintendence (CSIS) were modified.

Previously, the CSIS has the assignment of approving ex ante all of the corporate acts that a company wanted to make. However, with the enactment of the OLSOCSS the CSIS went on to have only assignment of monitoring and have ex post control. In this regard, the CSIS issue the resolution SCVS-DNCDN-2015-011 that contains the Instructive for the Monitoring and Ex Post Control (IMEPC), which aims to implement a regulation for monitoring and control all of the corporate acts that are not subject of ex ante authorization of the CSIS.

This IMEPC will allow to the CSIS to an ex post control of several corporate acts, such as the: the share capital increase of the companies registered in the Securities Market Registry, the inclusion and exclusion of shareholders, the incorporation of companies, among others.The scope of monitoring and control comprises all of the legal, economic, financial and accounting aspects of a company.

If in exercise of this assignment, the CSIS establish that a corporate act has no observe the legal requirements, will order by reasoned decision, the cancelation of the registration of the corporate act in the Mercantile Registry and will impose the sanctions that are established in the Law. These sanctions could be applied repeatedly until the company rectifies the observed corporate act.



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