We are in the season when companies must hold their annual general shareholders' meetings in order to review, their performance throughout the year and to define the strategy for next year. However, under Ecuadorian law, every general shareholders' meeting must comply with a series of obligations to be valid; these are provided in the legal framework and that must be taken into account:
- In addition to publication of the notice to the meeting in a widely circulated newspaper, shareholders will be sent the notice by e-mail on that same day. This e-mail to the shareholders and the internal examiners must include, in addition to the notice of the meeting, the information regarding the agenda for the meeting, with the relevant supporting justification and respective proposals.
- Unless a regulation in the by-laws provides a longer term, a minimum of eight days must elapse between the date of publication and the notice of the meeting by email, and the general shareholders' meeting. This period will not take into account the date of publication or notice of the meeting, or the date of the meeting.
- Shareholders can personally attend general shareholders' meetings, i.e. in person or through videoconferences, in accordance with the procedure established in the regulations.
- A shareholder may attend the meeting accompanied by a maximum of two advisors who may be legal, economic – financial or may otherwise be related to a topic that will be discussed at the meeting.
- All general shareholders' meetings must be recorded on digital media and it is the responsibility of the secretary of the meeting to add the file to the meeting's record.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.