On 23 May 2024, the Ministry of Justice issued Resolution No. 166/24 (the “Resolution”) that increases the maximum amount of the fine set forth in section 302 subsection 3 of the General Companies Act No. 19,550 (the “Law”).
Article 302 paragraph 3 of the Law empowers the supervisory authority to apply a financial penalty consisting of a fine to the company, its directors and trustees, in case of non-compliance with the Law, the articles of association or the regulations. This sanction is the most severe sanction contemplated in the Law and is intended to deter and prevent conduct that violates the rules in force, bylaws or regulations of the companies.
The new maximum fine limit was set at $8,000,000 (Eight Million Pesos).
