The "Small Clause" of Law 2387 of 2024: A Time Bomb for Mergers, Acquisitions and Reorganizations in Colombia
Corporate attorney Daniel Fajardo wrote an article for Lexir, delving into Colombia's Law 2387 of 2024, which introduces stringent requirements for companies under environmental investigation. This legislation mandates that companies must notify environmental authorities before initiating corporate processes like mergers or reorganizations, in addition to setting aside guarantees for potential sanctions. The law further complicates matters by not specifying the type or amount of these guarantees and by treating different corporate operations with a one-size-fits-all approach, potentially stifling important business operations. In essence, the "small clause" introduces additional hurdles and uncertainties for businesses, making the Colombian business landscape even more complex.