Corporate obligations in El Salvador: The annual general shareholders’ meeting

The time is approaching when every Salvadoran company is obliged to hold the Annual General Shareholders’ Meeting, for the closing of the fiscal year 2021, which must be held no later than May 31, 2022, and in which the following agenda items (as a minimum) must be known:

I- The Annual Report of the board of directors or the sole administrator (as applicable), the balance sheet, the income statement, the statement of changes in equity, and the external auditor’s report, in order to approve or disapprove the first four and take the measures it deems appropriate.

II- The appointment and removal of the directors (if applicable) and of the External and Statutory Auditors (if applicable), as the case may be.

III- The emoluments corresponding to the directors (if applicable) and to the External and Statutory Auditors.

IV- The application of results.

V- Any other additional item you wish to include (not required by law).

The Commercial Code and the Tax Code also establish as an additional obligation to comply with, that the certifications of the minutes of the appointment of the External and Tax Auditors, as well as the approval of the financial statements and distribution of results, must be registered in the Commercial Registry, within ten working days, counted from the date of the respective agreement.

In the case of the Fiscal Auditor, the DGII must also be informed of his appointment no later than ten business days from the date of the respective agreement, whose maximum date, if the meeting were held on May 31, would be JUNE 14, 2022.

For the above, our Corporate Law and Tax Law areas are at your disposal to assist you in this regard.