Corporate Alert: New Company Law Enacted

[POP Bad Boy]

Originally Posted by Fabio J. Guzman

The only real options are: (a) "adecuación" as an S.A., (b) transformation into a SRL or EIRl, (c) dissolution of the company.

Thanks from all of us for your answer.............

Options (b) and (c) are clear, but what is (a) "adecuacion"?

Thanks!

[Alfredo Guzman]

By "Adecuación" he means that if you wish to maintain your company under the S.A. corporate structure you'll need to adequate your old-law S.A. to meet the new requirements set forth by new company law No. 479-08. The "adecuación" filing is made at the "Registro Mercantil".

[cork]

Tuesday DR1 news reports a requested delay in implementation of law 478-08. (see title "Corporation Law 478-08 postponed?"

Was the postponment passed? How does it effect this discussion?

If the fees are US$1000 -US$1500 to change from C por A to SRL, is the fee the same to go from C por A to ERIL?

[POP Bad Boy]

Originally Posted by cork

Tuesday DR1 news reports a requested delay in implementation of law 478-08. (see title "Corporation Law 478-08 postponed?"

Was the postponment passed? How does it effect this discussion?

If the fees are US$1000 -US$1500 to change from C por A to SRL, is the fee the same to go from C por A to ERIL?

POSTPONED??? .........MAYBE:

La República - Senado aprueba varios proyectos de ley y préstamos

[MikeFisher]

Bad Boy, does it give 18 months to get it done?
Mike

[POP Bad Boy]

Originally Posted by MikeFisher

Bad Boy, does it give 18 months to get it done?
Mike

I saw the article, read it in Spanish, translated via Google in English per below............and STILL have no idea!

Santo Domingo .- The Senate yesterday declared emergency and approved in two consecutive readings of the draft law on commercial companies and individual companies.

The piece of legislation aims to extend the deadline to 18 months given to the adequacy of corporations formed before the law.

[socuban]

"La pieza legislativa tiene la finalidad de extender a 18 meses el plazo otorgado a la adecuación a las sociedades anónimas constituidas con anterioridad a la ley."

Sounds like the eighteen month extension is time for S.A. to raise and deposit the required RD$30MM capital. I don't see where it is giving a grace period past the June 19 deadline to do the conversation.

[POP Bad Boy]

Originally Posted by socuban

"La pieza legislativa tiene la finalidad de extender a 18 meses el plazo otorgado a la adecuación a las sociedades anónimas constituidas con anterioridad a la ley."

Sounds like the eighteen month extension is time for S.A. to raise and deposit the required RD$30MM capital. I don't see where it is giving a grace period past the June 19 deadline to do the conversation.

.............that sounds like a good interpretation........but I don't think that June 19th is a DEADLINE...........I think that is the beginning of a "transition period".............does anyone know how long that "period" would be???

[MikeFisher]

it is the beginning of the transition period, june 19th.
before that day no transition can be done, at least that's what my lawyer told me a while ago when i told her to bring that stuff in order.
don't know how much time over all is given til it has to be finished.
i guess not even the gubmin has any idea how many work they need to get done on the transition process, such deadline may come up later and may also be extended more than once.
Mike

[socuban]

Originally Posted by POP Bad Boy

but I don't think that June 19th is a DEADLINE...........I think that is the beginning of a "transition period"

Good point. June 19th sounds like a start line. Bad choice of wording on my part.

Wouldn't be surprised if the conversion time frame lasted equal to the eighteen months the legislators are looking for.