On April 18, the National Government issued Decree 667 of 2018. If you established a Simplified Joint Stock Company (“S.A.S.”), you must register the situation of control of your
company. Failing to do so can result in penalties of up to 200 legal minimum monthly wages.
What is the situation of control?
A situation of control is configured when a natural or legal person has decision-making power over the company of which it is a shareholder. In accordance with Colombian regulations, a natural or legal person has decision-making power over a company in the following scenarios: i) when it has 50% shareholding or more; ii) when a business group is formed between related companies; iii) when a person has a sufficient number of votes to elect the majority of the members of the Board of Directors.
The obligation to register the situation of control applies to all types of companies. However, the issuance of Decree 667 regulated the procedure to comply with said obligation with
respect to natural persons who are sole shareholders of simplified joint stock companies. In summary, registering the situation of control in the commercial register is not only an obligation of companies that exercise control over another company. It is also an obligation of natural person shareholders of any S.A.S, who must comply with such obligation according to the special procedure provided for it.
Do not risk sanctions. At Pinzón Pinzón & Asociados we will be at your disposal to provide you with the necessary advice to carry out this registration.
ANDRÉS FELIPE SARMIENTO
PINZÓN PINZÓN & ASOCIADOS