SPIN-OFF OF THE AGENCY FOR REGULATION AND CONTROL OF NON-RENEWABLE ENERGY AND NATURAL RESOURCES
By Executive Decree No. 256 dated May 8, 2024, the President of the Republic ordered the spin off (division) of the Agency for Regulation and Control of Non-Renewable Energy and Natural Resources ("ARCERNNR") into three new agencies, attached to the Ministry of Energy and Mines:
- Mining Regulation and Control Agency ("ARCOM")
- Electricity Regulation and Control Agency ("ARCONEL"); and,
- Hydrocarbons Regulation and Control Agency ("ARCH").
The Board of each of these agencies will be composed of: (i) the minister in charge of the sector or his permanent delegate, who will preside over it; (ii) a permanent delegate of the President of the Republic; and (iii) the National Planning Secretary or his permanent delegate.
The spin-off process must be completed within a maximum period of three (3) months from the issuance of Executive Decree No. 256, that is, by August 8, 2024.
The resulting entities will assume the assets, liabilities, rights, and obligations acquired by the split ARCERNNR within the scope of their respective competencies, and in case it is not feasible to identify a specific sector, in order to continue the contractual obligations acquired, the Executive Decree designated the newly created ARCONEL as the entity that will continue the contractual relationships until their completion.
In our opinion, this necessary process is of paramount importance for the country, as the resulting agencies will regulate and control in a technical, efficient, and focused manner each of the mining, electricity, and hydrocarbon sectors, which are fundamental pillars of Ecuador's economic management.
Should you require further information or need our assistance or legal advice regarding administrative processes previously handled by the now-defunct ARCERNNR or the newly formed agencies, please do not hesitate to contact us!
Read MoreBalance Sheets Submission 2024
Through Resolution No. SCVS-INPAI-2024-00008987 dated April 26, 2024, the Superintendence of Companies, Securities and Insurance extended the deadline for the submission of required information under articles 20 and 23 of the Law of Companies until May 31, 2024. For this purpose, companies may upload the corresponding information on the institutional portal without restrictions until May 26, 2024, and thereafter, in accordance with the schedule established in the aforementioned resolution, based on the ninth digit of the company's RUC (tax identification number). Avoid sanctions and comply on time with this corporate obligation; we would be pleased to advise you.
Evita sanciones y cumple a tiempo con esta obligación societaria, estaremos gustosos de asesorarte.
Read MoreInformation Disclosure of Foreign Partners/Shareholders
In accordance with articles 263, section 8 (limited liability companies), and 131 (anonymous societies) of the Companies Law, the legal representatives of companies established in Ecuador are obliged to submit to the regulatory authority, by February of each year, the list of foreign companies or legal entities that appear as partners or shareholders, indicating the name, nationality, and address of each of them, as well as a detailed list of all their members, to identify the natural person who is the ultimate beneficiary. This obligation must be fulfilled through the web portal of the Superintendence of Companies, Securities, and Insurance. Should you require assistance in fulfilling this or other corporate obligations, please do not hesitate to contact us.
En caso de requerir soporte para el cumplimiento de esta u otras obligaciones societarias, no duden en contactarnos.
Read MoreUNIFIED BASIC SALARY ADJUSTMENT/ 2024
On December 15, 2023, the Ministry of Labor of Ecuador, through Ministerial Agreement No. MDT-2023-175, established the unified basic salary (SBU) of the worker in general, for the year 2024, at US $460.00 (four hundred sixty 00/100 dollars of the United States of America).
This provision is applicable from January 1, 2024 and affects workers in general, including small industry workers, agricultural workers, maquila workers, paid household workers, operators (artisanal sector) and microbusiness collaborators.
If you have questions or concerns regarding this provision or its implications for your company or business, please do not hesitate to contact us.
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