Mexican tribunal confirms what the correct proceeding is to demand the rendering of account from a company’s sole administrator
ENGLISH VERSION A Federal Court shed light by deciding that the proper proceeding to sue a stock company’s sole administrator to render accounts is by filing a commercial ordinary legal action as oppossed to a civil summary proceeding. The latter was the action filed by a company inaccurately. This decision is based on the criterion […]
What happens when a spin-off of commercial companies is used as a strategy to avoid paying creditors?
ENGLISH VERSION Introduction The spin-off of an entity (original corporation being spun-off from) involves the division of its corporate patrimony by contributing its liabilities, assets, and capital stock in two or more parts, to other emerging entities. When the original corporation is extinguished upon making such contribution, we talk about a total spin-off proceeding. On […]
If a judge decides that the interest rate agreed on a loan is excessive, what happens with the interests already paid?
ENGLISH VERSION Facts The First Chamber of the Supreme Court of Justice of the Nation (“First Chamber”) decided on different criteria of Collegiate Circuit Courts whether the reduction to the interest rate shall have retroactive effects on the interest already paid. [1] That is, if the reduction of excessive or usurious interest shall be applied […]
A legislative initiative to reform the General Corporations and Partnerships Law was submitted.
ENGLISH VERSION An initiative was submitted to the Mexican House of Representatives to reform articles 185, 232, 236 and 238 of the General Corporations and Partnerships Law (hereinafter the “Law”) by congress woman Esther Berenice Martínez Díaz, member of the left-wing political party named Morena, which was forwarded to the Committee on Economy, Trade and […]
A legislative initiative to provide electronic contracts with more evidential weight was submitted
ENGLISH VERSION Globalization and technological progress have allowed the execution of agreements through means other than the traditional ones. The execution of agreements by electronic means is one of the main tools to effectively execute commercial agreements, given it allows merchants to execute commercial transactions without the need for them to do it in person. In […]
Is the fingerprint proper evidence to express the will of a contracting party in real estate sale ?
ENGLISH VERSION Decision The fingerprint itself serves to individualize the contracting parties. However, the fingerprint to be considered as an expression of a valid will, it shall be accompanied by a signature of another person “a ruego” (on request) [1]. Facts The Plenary of the Supreme Court of Justice of the Nation “SCJN” resolved a […]
Amendments to the General Tourism Law are discussed
ENGLISH VERSION Initiative As a result of the cancellation of the Program for Sustainable Regional Tourism Development and Magical Towns (“PRODEMÁGICO” by its abbreviation in Spanish) in accordance with the 2019 National Expense Budget an Executive Order Draft was submited to the Senate to Add some provisions to the General Tourism Law (the “Draft”). It […]
Official Mexican Standard on Vehicle physical-mechanical conditions is cancelled
ENGLISH VERSION On November 15, 2022 the Official Mexican Standard NOM-236-SE-2021 Vehicles- Physical-mechanical conditions of vehicles with a gross vehicle weight not exceeding 3,857 kg (“NOM”) was cancelled as per publication in the Federal Official Gazette (“DOF” by its abbreviation in Spanish). [1] The issuance of the NOM was published in the DOF on May […]
Obligations that Mexican legal entities must fulfill: opening and updating their corporate books
ENGLISH VERSION Mexican legal entities have the obligation to open corporates books and records and keep them updated. These books consist of the shareholders’ meetings minutes book, stock registry book or special partners’ book and the capital variations book, when the administration body of the companies is plural, they shall also have a board of […]
Passengers win class action against Mexican airline
ENGLISH VERSION Mexican air carrier Interjet was ordered by a Mexican court to pay passengers $144,020,781.33 Mexican pesos (around $7.23 US million dollars) after losing a class action filed by the Consumer Protection Agency (“CPA”) for claims received between 2018 and 2020. The airline was also declared bankrupt by a court in August. The claims […]
The homologation of a foreign judgment and its execution in Mexico do not require an exact coincidence between the law of the country where the judgment was issued and the Mexican laws.
ENGLISH VERSION The First Chamber of the Supreme Court of Justice of the Nation determined that the recognition and execution of a foreign judgment in Mexico lies in the principles of international procedural cooperation, as well as solidarity, consideration and reciprocity among nations. Therefore, the homologation process1 of said foreign judgment does not require that […]
New Mexican Official Standard on Vehicle Safety Specifications is issued
ENGLISH VERSION On October 3rd, 2022, the NOM-194-SE-2021 (“NOM”) [1] was published in the Federal Official Gazette (“DOF” by its abbreviation in Spanish) on the requirements and specifications of safety devices for new lightweight vehicles. Therefore, the content of the NOM-194-SCFI-2015 that included essential safety devices in new vehicles is cancelled. [2] The main purpose […]