Rodrigo Canales
rcanales@innovalaw.com.mx
The holding of shareholders’ meetings is a fundamental requirement for the general operation and decision making within all Mexican companies. However, with the pandemic and the evolution and strengthening of communication technologies that came with it, the meetings and, therefore, the shareholders’ meetings, held remotely and by electronic means. For this reason, the Congress of the Union recently discussed the possibility of Mexican companies holding meetings through these electronic means.
This implies that shareholders and/or their legal representatives may participate and vote in the meetings through virtual platforms, without the need to be physically present at the place where the meeting is held. For this, certain legal and technical requirements must be met, such as contemplating this circumstance in the company’s bylaws, as well as guaranteeing the authenticity and integrity of electronic communications and remote access to relevant information.
This modality of meetings could represent important benefits for large Mexican companies, such as the reduction of travel and lodging costs for shareholders residing outside their corporate domicile, and the possibility of a greater participation of all shareholders. However, there are also some risks and challenges to be considered, such as the security of the connection and the confidentiality of what is transmitted, the validation of the identity of the shareholders or their legal representatives.
In the international scenario, the holding of meetings through electronic means is already a common practice in many countries, while in Mexico, the regulation on this subject has not yet been completely established, but initiatives have already been presented to achieve it.
In order to be able to hold remote meetings, Mexican companies must prepare themselves adequately and ensure that they comply with the requirements established by law. In this sense, InnovaLaw can play an important role in helping companies adapt to this new trend by complying with the law and the best practices in the industry. At InnovaLaw we have the necessary experience and knowledge in corporate law to allow us to provide advice and customized solutions for your company’s needs.
In conclusion, holding meetings through electronic means can be a valuable solution for Mexican companies, especially for those companies with shareholders residing outside the company’s registered office and mobility restrictions. However, it is important to take into account the legal and technical challenges that may arise, and to have the advice of experts in the field to ensure a safe and efficient process. At InnovaLaw, we are committed to helping Mexican companies adapt to the latest trends in corporate law and technology, and we are ready to support them in this modality of remote shareholder meetings.