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Financial Information of Corporations




In Mexico, legal entities have rights and obligations; which must be enforced and complied with, respectively. Public limited companies have an annual obligation, borne by the sole administrator or the Board of Directors, and that is to hold a meeting of shareholders in order to present a report that includes at least:


A) A report from the directors on the progress of the company during the year, as well as on the policies followed by the directors and, where appropriate, on the main existing projects.


B) A report that declares and explains the main accounting and information policies and criteria followed in the preparation of financial information.


C) A statement that shows the financial situation of the company at the closing date of the fiscal year.


D) A statement that shows, duly explained and classified, the results of the company during the year.


E) A statement that shows changes in the financial situation during the year.


F) A statement that shows the changes in the items that make up the company's assets, which occurred during the year.


G) The notes that are necessary to complete or clarify the information provided by the previous statements.


H) In said assembly, the commissioner's comments and opinions will be received.


The holding of the Ordinary General Assembly of Shareholders that we refer to is important because it allows the partners to have knowledge about the situation of the company with respect to the losses and profits generated, they can make economic and financial projections, establish new internal policies; and visualize areas of opportunity, based on the analysis of the data collected in the reports.


Does abstaining from holding an assembly to present Financial Statements imply any legal sanction?


Although our legislation does not establish any sanction for not holding the Ordinary General Assembly referred to in article 172 of the General Law of Commercial Companies, compliance with this obligation allows companies to have better performance, development and growth.



 

Ley General de Sociedades Mercantiles, 2018.

Código Civil General, 2021.

Dávalos Torres María Susana, Generalidades de las Sociedades Mercantiles, in Manual de Introducción al Derecho Mercantil, Instituto de Investigaciones Jurídicas-UNAM, Mexico City, 2010, available at: https://cutt.ly/tFRekdl

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