Modernization of Conflict of Interest Rules

Corporate attorney María Paulina Rendón wrote a column for Asuntos Legales examining the need to modernize regulations on conflicts of interest for company directors. Ms. Rendón noted the impact of the recent Draft Decree of the Ministry of Industry and Commerce, and highlighted its essential definitions and the introduction of the “principle of deference to business judgment.” This bill will establish new guidelines to identify and resolve conflicts, focusing on transactional competence and seeking to evaluate administrators' decisions from a perspective of compliance with business duties.

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