The Organic Law to promote the Violet Economy within its desire to promote, guarantee and execute the mainstreaming of the gender approach and multiculturalism incorporates into the Companies Law, an unnumbered article after Article 20, through which it provides that all companies species of companies governed by the aforementioned Companies Law, at the time of the formation of their Boards, when they have three (3) or more members, they must observe that for every three members, one of them is female.

For companies and financial institutions regulated by the Companies Law, for the formation of their Board of Directors, the provisions of the aforementioned unnumbered article will apply, considering the selection and qualification rules established in the Monetary and Financial Organic Code and other applicable regulations.

In the case of companies whose Directors require prior qualification procedures in accordance with special sectoral laws, they will be subject to the provisions of said special laws.

The Law does not currently establish a sanction for the case of non-compliance with this provision, nor has any regulation been issued.

For more information contact:

Maria Rosa Fabara  | Partner Bustamante Fabara | mrfabara@bustamantefabara.com

Mariana Villagómez | Partner Bustamante Fabara | mvillagomez@bustamantefabara.com