Resolution 0116 came into force on February 27 2002. In this resolution the Superintendency of Securities defines new illegal, non-authorized and insecure practices in relation to publicly traded companies in order to protect the rights of minority shareholders and to guarantee transparent decisions at general shareholders meetings.

Practices that have been made illegal for officers and directors of a company include:

  • accepting or advising shareholders to issue blank or broad powers of attorney create representation and/or voting rights at the general shareholders meetings;

  • advising shareholders to submit any specific proposal at general shareholders meetings; and

  • advising shareholders to vote in a specific manner.

Resolution 0116/2002 also adopts a series of mandatory corrective measures that seek to guarantee the avoidance of such practices at general shareholders meetings in future.

The resolution had its first practical effect when a major Colombian publicly traded company had to change its summoning notice to its shareholders, previously published in the newspapers, by publicly informing its shareholders of the extent of this new regulation in order that all documents and activities should meet its requirements.

For further information on this topic please contact Ricardo Fandiño De La Calle or Mauricio Jaramillo Campuzano at Gómez Pinzon & Asociados by telephone (+57 1 310 7055) or by fax (+57 1 310 6646) or by email ([email protected] or [email protected]).