Se prohíbe la participación de las S.A.S. en sectores estratégicos
The Organic Law of National Solidarity, enacted through its publication in the Sixth Supplement of Official Registry No. 56 on June 10, 2025, amended the fifth unnumbered article following Article 317 of the Companies Law, corresponding to the prohibitions to which Simplified Stock Corporations (S.A.S.) are subject, establishing, among other prohibitions, that S.A.S. may not engage inactivities related to strategic sectors, mining, or activities linked to these sectors1; strategic sectors being understood, as defined in Article 313 of the Constitution of the Republic, as those which, due to theirimportance and magnitude, have a decisive economic, social, political, or environmental impact2; currently included in this group are: energy in all its forms, telecommunications, non-renewable natural resources, transportation and refining of hydrocarbons, biodiversity, genetic heritage, the radio spectrum, and water.
This provision would require companies incorporated as S.A.S. that engage in such activities to restructure and possibly transform into another type of corporate entity provided for under Ecuadorian legislation (such as corporations or limited liability companies).
If you have any questions or concerns regarding this provision or its implications for your company or business, please do not hesitate to contact us. We will be delighted to assist you!
1 Ecuador, The Organic Law of National Solidarity, Official Registry No. 56 – Sixth Supplement [06/10/2025], unnumbered article 5 following Article 317 of the Companies Law.
2 Ecuador, Constitution of the Republic of Ecuador, Official Registry No. 449 [October 20, 2008], Article 313.