SICT clarifies: the suspension of Uber does not authorize it to operate at airports.
The Government of Mexico, thru the Ministry of Infrastructure, Communications and Transportation (SICT), clarified the situation regarding app-based transportation services at airports, in response to various news reports concerning a federal court’s injunction granted to Uber. The SICT reported that passenger transportation services to and from airports provided thru platforms such as Uber do not […]
Initiative to reform the Airports Law: proposed changes to the Airport Use Fee (TUA)
A few days ago, a group of senators introduced a bill to amend the Airport Law (LA) regarding the airport use fee (TUA). The initiative proposes establishing criteria for its calculation, transparency in its application, and dissemination. According to lawmakers, the TUA fee charged at various airports in Mexico is uneven and unjustified, and often […]
Appointing and Removing Directors in Mexico: What Every Business Owner Should Know
Who are the key persons involved in the management of each type of entity in Mexico? The most common commercial companies in Mexico are the limited liability company (sociedad de responsabilidad limitada) and the stock corporation (sociedad anónima). With respect to limited liability companies, the general partners’ meeting serves as the company’s supreme governing body. […]
Which types of corporate entities are most commonly used in Mexico, and what are the key structural similarities and distinctions between them?
In Mexico, the two most commonly used types of commercial companies are the limited liability company and the stock corporation. In both types, partners are liable for company debts only up to the amount of their contributions or shares, respectively. This limited liability is one of the main reasons why partners and investors choose these […]
Mexico Sets Business Precedent on International Multimodal Transport Liability
A federal court in Mexico has issued a public ruling on an international multimodal transport contract and on the liability of the logistics operator. A Mexican company, in its capacity as shipper (the entity that hands over the goods to the carrier or operator), entered into an international multimodal transport contract for goods (carriage of […]
SUPREME COURT HALTS UNILATERAL TERMINATIONS OF COMMERCIAL AGREEMENTS WITHOUT LEGITIMATE CAUSE.
What did the case reviewed by the Court consist of? In a recent ruling, the First Chamber of Mexico’s Supreme Court of Justice (the Court) examined whether it is legitimate for one of the parties in a contract to conclude or terminate it unilaterally and without any justification. Although the matter examined by the Court […]
Usury and Exploitation in Contracts: New Perspectives of the Supreme Court of Mexico
The execution of an agreement is an activity we frequently engage in. Whether we are aware of it or not, we regularly enter into contracts of carriage, purchase and sale agreements, and even lease and loan agreements, among others. Regardless of whether the parties to an agreement are obligated to comply with the terms they […]
When 99% Isn’t 100: The Limits of Majority Shareholder Power in Mexico
In a recent case, a decision of a Mexican court was made public [1], which brings us back to the topic of whether, in all cases, the majority shareholder in a business company will necessarily have absolute control over its decisions. That is to say, if one or more shareholders own the majority of the shares […]
Piercing the Corporate Veil: Identifying the Real Actors Behind Commercial Entities in Mexico
In a press release, the First Chamber of the Supreme Court of Justice of Mexico confirmed that piercing the corporate veil of a corporate entity will not be permitted when requested as a precautionary remedy. [1] This sheds light on the limitations surrounding requests for such a remedy. What Does the Corporate Veil of a Company Entail? […]
The increase in compensation for overbooked flights: an effective measure or a regressive burden for passengers?
On May 14 of this year, a bill to amend the Civil Aviation Law (LAC) in Mexico was submitted to the chamber of deputies, with the aim of, among other issues, increasing the compensation amount for passengers affected by overbooked flights. This bill has joined others that in recent times have sought to restrict or […]
Is your company over-regulating its decisions? A practical lesson to protect your investment
Background A notary public formalized the minutes of an extraordinary meeting in which a company granted a power-of-attorney to an individual. A shareholder of said company filed a complaint against the notary for intervening in that formalization. As a consequence, the notary was suspended for three months for not having registered the deed in the […]
The Importance of Formality in the Powers-of-attorney in Mexico: Lessons from a Judicial Case
Any power-of-attorney granted and formalized before a notary public is valid. Of course! How could it not be? If it has the notary’s seal and signature. Moreover, the document clearly reflects both the corporate name of the company granting the powers-of-attorney and the name of the attorney-in-fact. Both, as they appear in the current bylaws […]