ACM LEGAL

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THE IMPORTANCE OF THE GENERAL ANNUAL SHAREHOLDERS MEETING.

A truly important activity in Commercial Entities is the holding of General Annual Shareholders´ Meeting. 

This is due to the fact that such Meeting is an event of utmost importance for the Company since it is a moment where three main aspects of the corporate and financial life of the company are discussed and if applicable approved: 

a)Discuss, approve or modify the Administrators´ Report, taking into consideration the Inspector´s Report and take the measures as deemed convenient;

b)If applicable, appoint the Sole Administrator or Board of Directors and the Inspectors;

c)Determine the Administrators and Inspectors compensation in the case such concepts are not contemplated within the Corporate By-laws.

Additionally, the fact of having General Annual Shareholders´ Meetings Minutes support their carrying out, will be a decisive matter in the case of a Due Diligence process which generally takes place when there is interest in acquiring the Company from third parties or in the case of a corporate update. 

General Annual Shareholders´ Meetings besides being mandatory by the General Law of Mercantile Corporations (Art. 181), allows the Company to have a healthy corporate life since through these, a proper communication among administration and surveillance bodies and the main body of the Company, which enables the Meeting to take the relevant decisions on a timely manner, so the proper development of the Company´s business maintains its course. 

At ACM Legal, we are ready to provide you with the support you require in this and in any other corporate application you may require, please bear in mind we are just a phone call away in order for us to keep your company updated and in that manner, avoid possible legal, financial or business contingencies. 

Sincerely, 

_______________________

Carlos A. Trosino

Partner