The exisiting Corporations Law was enacted in 1997. A deadline of December 31 2000 was given to companies operating in Peru to comply with the law. Since many corporations have not yet made the necessary changes, the government enacted an emergency decree on December 4 2000.
The decree establishes the following provisions to facilitate compliance:
- Any shareholder that holds at least 20% of a company's stock capital can request that the public notary of the area where the company is domiciled call a general shareholders meeting, with the sole purpose of adapting its bylaws to come into line with the 1997 law.
- The meeting will require that at least 50% of the stock be represented on first notice, but any percentage may be represented on second notice.
- Where no majority is reached, the bylaws presented by the shareholder who requested the meeting will be automatically approved. The meeting's president will not have a casting vote.
For further information on this topic please contact Jose Antonio Olaechea at Estudio Oaechea by telephone (+511 264 4040) or by fax (+511 264 4050) or by e-mail ([email protected]).
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