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With the shareholder’s consent it is possible to modify the conditions for the payment of dividends.

The incomes of many Colombian societies have declined markedly during the Covid-19 pandemic.

This has been detrimental to different companies at the time of recognizing and paying dividends to shareholders according to the form approved at the general meeting, where the distributable profits are decreed, as well as the form and terms for payment, with the shareholders acquiring the right to collect the dividends under the conditions provided for, and the company becoming the debtor. The shareholders acquire the right to collect the dividends under the conditions set forth, and the company becomes the debtor.

Thus, the Superintendence of Corporations, through official letter 220-194535 of September 26, 2020, stated that, despite the economic crisis that companies are going through, it is not legally possible to dispose of the payment of dividends by the highest corporate body, the legal representative, or the company itself, since they are the property of the shareholders, who cannot be shareholders, who cannot be forced to negotiate new payment conditions.

However, with the consent of the creditor (shareholder) However, with the consent of the creditor (shareholder), when agreed with the company, a modification in the terms and conditions established for payment may be authorized.

On the other hand, the entity assured that, when companies undergo economic crises, they can access ordinary or extraordinary insolvency mechanisms to try to normalize their credits under the conditions and terms agreed in the reorganization agreement signed.

Written by: Alejandra Cardona Mercado.

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