Does removing the director of a company require his consent?
The Federal civil law, states that in order to remove the directors that were appointed in the articles of incorporation of a civil partnership, all the partners consent is required.[1] However, what does “all the partners consent” entail? The director of a civil partnership sued the nullity of a general shareholders’ meeting resolution in which, […]
Mexican Court determines that lessors are only allowed to forgive the payment of two months of rent
The Federal civil law establishes that, if the lessee is totally prevented from using the leased property as a result of fortuitous event or force majeure, no rent will be charged while the impediment lasts, and if it lasts longer than two months, the lessee may request the contract termination. Facts In a direct amparo […]
Mexican Court determines the effects of inserting a condition in promissory notes
Introduction A promissory note is an executory instrument regulated by the General Negotiable Instruments and Credit Transactions, which establishes the mandatory requirements that said document must contain: I.- The mention of being a promissory note, inserted in the text of the document; II.- The unconditional promise to pay a certain sum of money; III.- The […]
Is it legally allowed to agree the payment of interests when executing a donation agreement?
ENGLISH VERSION Introduction: Two people entered into a donation agreement of movable property, in the agreement the donor determined that the donee should prove to the donor the use of the donated goods for the agreed purpose, otherwise the agreement would be cancelled. By not fulfilling the agreed purpose, the donor filed a lawsuit against […]
Senator submits initiative to amend laws regarding pledge bonds
ENGLISH VERSION On February 8, 2023, Senator José Narro Céspedes, member of the Parliamentary Group of the National Regeneration Movement Party, submitted an initiative to amend the General Law of Negotiable Instruments and Credit Transactions as well as the General Law of Organizations and Credit Auxiliary Activities,[1] with the purpose of considering the issuance of […]
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 […]
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 […]
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 […]