The Guatemalan Commerce Code, Decree 2-70 of Congress of the Republic of Guatemala, establishes a series of legal requirements that have to be complied with by all the local mercantile companies, especially the sociedad anónima (stock corporation), being the most frequently used legal vehicle for the promotion and development of all kind of mercantile, industrial and commercial activities.
To verify compliance with these legal requirements, we recommend proceeding with a corporate due diligence at least once a year and generally before the annual shareholders ordinary meeting, so that the shareholders can understand the company’s updated situation.
This corporate due diligence is performed by attorneys specialized in corporate law and includes the review and update, among others, of the company’s corporate documents and books, and the investigation of the information registered at the Mercantile Registry of Guatemala of this company.
We provide a relevant brief of some of these legal requirements:
- Annual Ordinary Shareholders Meeting – within 4 months following the closing of the financial year: January to April each year (Art. 134).
- Shareholders Registry Book with updated information, and duly authorized by the corresponding public offices (Art.125).
- Mercantile operations back up (Art.381).