Withdrawals from the Unemployment Insurance Fund due to reduction in income is limited to the amount saved

Decree 488 of March 27 established that workers who had their income reduced due to the Covid-19 pandemic may make monthly withdrawals from the Public Unemployment Insurance Fund equal to the amount of the reduction in income. The Ministry of Labor additionally stated that workers who fulfill all requirements cannot be denied this benefit and it will remain in force until the health emergency is over.

Lastly, the Superintendence of Finances indicated that the monthly withdrawal amount cannot exceed the amount of the reduction in income, certified by the employer, and will be limited to the available funds in worker’s Public Unemployment Insurance Fund account.

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Opinion on type of income to be included when determining requierement to establish a statutory auditor

(Public Accounting Technical Council, Opinion 1080)

The Public Accounting Technical Council issued an opinion that in order to calculate a company’s gross assets, to determine it’s obligation to establish a statutory auditor, all recognized income must be included, made up of oridinary income, financial income, income from the changes in fair value, exchange rate differences, profit from the sale of non-current assets, and other income. As a reminder, Law 43 of 1990 established the obligation to have a statury auditor for all commercial corporations whose gross assets where equal to or exceeded 5,000 minum wages and/or whose gross income was equal to or exceeded 3,000 minum wages in the previous year.

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Salaries set in foreign currency must be paid at the representative market rate or a fixed rate set in the contract

The Ministy of Labor issued an opinion regarding salaries set in foreing currency. The opinion explains that in labor contracts stipulating the salary in a foreing currency is valid. However, due to the general rule that states that transactions in foreign currency which are not exchange operations must be paid in Colombian legal tender, salaries set in foreing currency must be payed in Colombian pesos. As such, the parties may use the representative market rate at the day of payment or a fixed rate set in the labor contract, provided the fixed rate is not set below the representative market rate.

Shareholders and their attorney cannot act jointly at shareholders’ assembly

(Superintendence of Corporations, Opinion 220-116049, 10/23/2019)

The Superintendence of Corporations issued an opinion stating that a partner o shareholder cannot act jointly with their attorney at meetings of partners or the shareholders’ assembly. However, this does not mean attorneys cannot be present, but only in their role of advisors and cannot participate or vote in such meetings.