General commercial company law provides that commercial companies are: In general, the legal representatives of companies are generally persons covered by the Directive, such as the manager, the director. Thus, you can also be a qualified person in terms of leadership, control and management of corporate governance. In addition, they may not be partners or shareholders, but they are still close people whose control they have over the company. As in any order of things, there are certain requirements that must be met, otherwise it could be a reason for the nullity of the various acts and contracts that it celebrates on behalf of the company. Before appointing a legal representative, it is necessary to draw up a statutory document indicating the roles, duties and limits of the legal representative, so it is important to delimit his missions. The shares of the representative bodies of the company are allocated to the company. The administrative bodies (representatives) of the company are liable to the shareholders for the non-performance of their duties and obligations. There will also be cases where the partners will be held liable for the breach of this order and obligations towards the company towards third parties. In public limited companies, the representatives may be the board of directors or the sole director. These are the rights that assist a partner who has common shares that are normally issued and that transfer the rights already mentioned, but who, in addition to the aforementioned rights, has preferred shares, also has additional rights, that is, anyone who has preferred shares enjoys greater power, so to speak; The additional privileges enjoyed by a partner with a privileged share are as follows: In practice, entrepreneurs or businessmen often have doubts about the question of legal representation of companies, the scope or© the powers, duties and responsibilities involved in being the legal representative of a company. In order to guide people who have doubts about the representation of legal persons or companies, we present questions and answers on the legal representation of companies.
Regardless of the type of management that the company has for legal representation through the board of directors or the single administration, the duration of its activity may not exceed 7 years. At the end of this period, shareholders must appoint a new management team. It is important to note that there are no impediments to the re-election of directors. Any company intending to start an activity must need at least one legal representative. This can be inside or outside Chile, and its function is to root in your decision-making. It is the one who represents the company before third parties, is able to bind it and will, in turn, act legally for the actions of the latter. Therefore, it is a cargo that certainly has benefits, but also associated risks. In the first case, when creating a joint-stock company (S.A.) or a limited liability company (S.R.L.), the shareholders must accept the appointment of a legal representative within the framework of the company`s articles of association. How you appoint a legal representative in El Salvador depends on the type of company you have in the country. A representative is someone who represents another or another and is legal because their representation is in accordance with the law. The manner in which legal representation is carried out depends entirely on how the shareholders have stipulated it in the company`s articles of association.
Business corporations are required to form a board of directors of at least 3 members, each with its respective deputy. The capital of joint-stock companies is divided into equivalent shares and is represented by a negotiable security. The partnership is one of the most commonly used figures in the creation of companies and consists of a plural number of partners, which cannot be less than five (5) partners and an unlimited maximum, i.e. it must have at least 5 partners without upper limit. The shares are indivisible, that is, in the case where a share belongs to more than one person, it cannot be divided, and therefore the different holders of the share must elect a proxy who exercises on their behalf the rights granted to them by owning the share. After this step, companies can appoint the legal representative through the company`s general meeting. After the appointment of the new legal representative, the company must certify the minutes of the annual general meeting and submit them to the commercial register. The General Meeting is the supreme administrative body of the company and is composed of the shareholders gathered in a quorum under the conditions laid down in the respective statutes, who appoint the Board of Directors. Can the legal representative be the same owner of the business? Where, in order to perform a legal act or transaction or to intervene in administrative or judicial proceedings, a person claiming to represent a legal person is required to prove that status, he must produce the act or act in which he is represented by the legal person. In addition, depending on the case, the power of attorney authorizing the person to act on behalf of the company or the mandate contract with the formalities prescribed by law may be presented. A maximum number of partners is not set for this type of company, however, it must be composed of at least five partners or shareholders, as called the Commercial Code, the share capital of the company is represented in shares, which can be homonymous or holder.
The documents must be confirmed before the Ministry of Foreign Affairs of Chile, a fundamental step to prove the authenticity and legal validity of the document in Chile. The natural entrepreneur is everything and everyone at the beginning of the business. He is the sole shareholder, he is the legal representative, even the accountant (or at least he intends to do so). In these situations, there is no risk of fraud as all situations will be affected by your decision. You might also be interested in: Complete Guide to Types of Business to Start a Business in Chile and Need a Lawyer to Change Business? and How is the change of company done?. A legal representative who is familiar with HS codes, local rates and tariffs, and customs clearance requirements will save your business money while maintaining compliance with company regulations. Dividends may be paid in cash or through new shares, but in the latter case, the approval of at least 80% of the share representation is required.