What is the Corporate Government and why do I need it in my company?

What is the Corporate Government and why do I need it in my company?

Inside each one of the areas in a corporation exists roles, responsabilities and different organizations for the proper performance and operations of these, there are also internal organisms that are in charge of reviewing every activities related to the company, the performance all together of every collaborator is what we know as corporate government in a company

We can start defining the corporate government as the module of organization and conduction of the relationships between the collaborators of the company, which is in charge of establish and coordinate the tasks and responsibilities that are held in the central organ of the company and with this achieve the transparency and equitable that matches the mission of the partners about their company.

Implement a corporate government in a company brings an endless of benefits, however, the most important and clear to highlight is the image given to the organization, partners, employees and third people interested in having a commercial relationship that will bring more job to the organization. The above highlights the fact of having a better organization benefits every party involved, giving the impression that a good organization starts from the inside of the company for whom are looking for a commercial relationship.

Besides the above, it is very important to highlight also the labor security that comes with having a proper corporate government to the partners, shareholders and heads of every company having the responsibilities well established and with just one vision of the business between their collaborators, helping the task destinated to every pillars of the company.

As complicated as it may seem, the corporate government is not a difficult job, however, it requires the professional advice who knows the structures and strategies for the correct application of this job method.

As a conclusion is our obligation to deliver the security and organization that starts from the inside of every company and it comes out for a better image, distribution and well performance that benefits the shareholders and also a third party involved in alliance or commercial relationships.

Antonio Quiroga

Gloria Ponce de León & Hernández

Digital Contracts

Digital Contracts

The contracts in most of the Civil Codes of the Mexican Republic, one of the requirements is the signature, which can be ratified before a Notary Public or witnesses, without such requirement, the nullity could be reached.

At this time, with the advancement of technology, it has been possible to develop systems or internet pages where the contracts to be signed should not be the parties in the same physical place, without doubting that the signatures were stamped or not by the parties, since that for this, electronic signatures issued by government agencies (Tax Administration Service (SAT), Economic Secretariat (SE), etc.) are used, which gives legal certainty that people have expressed their will to be agreed in accordance with the contract.

In a digital contract, all parties to a contract, creditors, debtors, jointly obligated parties, witnesses, can negotiate, sign and execute electronic contracts in real time. In addition, the printing of documents is limited, as each of the parties safeguards their digital contracts and annexes in the cloud.

Regarding jurisdictional processes, the Federal Judicial Branch implemented a technological platform for the development of judicial processes in district courts and collegiate circuit courts. For example, you can file a claim for protection with your electronic signature, offer evidence, release requirements and desist from lawsuits. Likewise, each Judicial Power of the States of the Mexican Republic has implemented what can be called the “Virtual Court”, which does the trial online, saving transfers, and conducting the hearings of a jurisdictional process by video call.

Likewise, when it comes to contracts and their digitization, you have to be careful since there are several internet pages that offer the electronic signature of contracts service, but not all of them have the guidelines requested by the Commercial Code, Law of the Advanced Electronic Signature, the Federal Code of Civil Procedures, so if that legal instrument is brought to trial, it could object or dismiss it as false and have problems enforcing the respective contract.

Arturo de la Peña

Gloria Ponce de Leon & Hernández

Initiative to reform the Civil Code of Mexico City, in matters of Leasing and Health Emergencies

Initiative to reform the Civil Code of Mexico City, in matters of Leasing and Health Emergencies

In recent months, an initiative with a draft decree was presented in the Official Gazette of the Federation to reform and add various provisions to the Civil Code for Mexico City, in terms of leasing, with the aim of guaranteeing the right to housing. against the COVID-19 pandemic.

The draft decree of reference proposes to reform articles 2398, 2406, 2406 Bis, 2425 Bis and 2431 Bis of the Civil Code for Mexico City. Some of the most relevant changes of the initiative are the following:

Duration of the lease: the initiative proposes an amendment to article 2389, to establish a minimum duration of 3 (three) years for the lease contracts of real estate destined to dwelling houses, except by express provision of the lessee.

Eviction: the vacancy trial will not proceed, even due to non-compliance in the payment of rent, when the lease of the property intended for a house is not in writing.

Tacit lease: it will be understood that there is a lease, by proving the existence of a consented occupation of the property by a third party in exchange for remuneration.

Rights of the Lessee: it is contemplated that these rights are provided within the leases of real estate destined for a home, as follows:

  • The tenant may not be required more than one month in advance for the lease of the property
  • No bond or any type of real property can be requested as collateral.
  • You cannot be a victim of arbitrary, illegal and or forced eviction.
  • Notifications of proceedings for judicially ordered vacancies must be made two months in advance
  • There must be assistance from personnel in unemployment of people belonging to vulnerable groups, among others

Alternative means of dispute resolution: the parties will have the right to access dispute resolution mechanisms in fortuitous cases that require a rethinking of the conditions of the contract.

Temporary or definitive renegotiation of the conditions of the contract: under a case of national emergency, natural disasters, declarations of environmental or natural emergency, or any other situation of force majeure that paralyzes economic activities and prevents the tenant from complying with the contract, the tenant You may request the lessor for the temporary or definitive renegotiation of the lease.

If you require any advice in relation to this issue, contact us at contacto@gphlegal.mx or www.gphlegal.mx

Javier Estrada

Gloria Ponce de León & Hernández

Regulations on the production, research and medical use of Cannabis

Regulations on the production, research and medical use of Cannabis

Undoubtedly, and despite the fact that the Senate of the Republic has yet to approve the Decree enacting the Federal Law for the Regulation of Cannabis and reforming and adding various provisions of the General Health Law and the Federal Criminal Code approved in general by the Chamber of Deputies on March 11, 2021, Mexico has taken a great step forward in terms of regulating the recreational use of marijuana.

But also prior to said decree, on January 12, 2021, the Regulation of the General Health Law regarding sanitary control for the production, research and medicinal use of cannabis and its pharmacological derivatives was published in the Official Gazette of the Federation, which as mentioned in previous articles aims to establish the guidelines through which, The objective of this law, as mentioned in previous articles, is to establish the guidelines through which people who wish to engage in the production of marijuana, have a specific regulation that prevents the commission of a crime, but above all, have a tool that makes research on the benefits of cannabis, which has proven to have more benefits than harm to the health of those who consume it, grow in depth.

The regulations mentioned in previous paragraphs are part of the actions taken by the Ministry of Health and the Federal Commission for the Protection against Health Risks (Cofepris) to comply with the decision 57/2019 of the Supreme Court of Justice of the Nation (SCJN) and are intended to comply with six essential points: regulation, control, promotion, recreational use, commercialization through the industry and health surveillance of cannabis as a raw material, its pharmacological derivatives and cannabis medicines.

There is still a long way to go in terms of the necessary reforms to the corresponding Laws and Codes to harmonize them with the new Regulations, as well as a broad criterion of the authorities when granting the necessary permits or even judging the possible commission of a crime with the possession of cannabis beyond what is allowed or even the issue of cannabis tourism that has occurred in other countries, that is, to prevent the recreational use of marijuana by foreigners from harming third parties.

It is also important to raise awareness among adults, parents and young people about the recreational use of marijuana without harming third parties and always within the framework of legality that the laws and regulations allow.

By way of conclusion, it is exciting and generates great expectations the reforms recently published and discussed in the Chambers also by the fact of the economic growth that the cannabis industry will generate in Mexico within the framework of legality, especially for the benefits that are still to be discovered; there is a long way to go but it is inevitable the generation of great expectations for the production of marijuana, so if you have any questions about the requirements to create your industry, market the compounds or create your cannabis production company do not hesitate to contact us.

Carolina Áviles

Gloria Ponce de León & Hernández




Reform initiative to regulate Social Networks

Reform initiative to regulate Social Networks

Senator Ricardo Monreal Ávila presented the initiative with a draft decree reforming and adding several provisions of the Federal Telecommunications and Radiofusion Law, where it is proposed to establish the bases and general principles for the protection of freedom of expression in social networks, The Federal Telecommunications Institute is given the necessary powers to guarantee the exercise of this human right in cyberspace and to establish clear limits for the owners of such accounts concerning the suspension and elimination of accounts, thus contributing to the legal security of users and service providers.

To this effect, Article 3 includes the definition of social network services and those relevant ones that have one million or more users. For this reason, it is considered that this type of social network is capable of generating a greater impact on social communication processes and the legal sphere of citizens. The purpose of this regulation is to limit the scope of protection only to those cases that can truly affect freedom of expression in social networks that have a large community such as Facebook, Twitter, Instagram, YouTube, and Snapchat.

Likewise, the networks may establish mechanisms to suspend or remove accounts and content by terms previously authorized by the Federal Telecommunications Institute (IFT); it also establishes that only accounts and content that disseminate false news, express hate messages, affect the rights of minors, reveal personal data or provoke any crime may be removed or suspended.

On the other hand, social networks must have an internal procedure to challenge the suspension of accounts and content to be resolved within a maximum period of 24 hours and attended by specialists in human rights and freedom of expression. If the social networks do not resolve the challenge, a complaint about the violation of freedom of expression may be filed before the IFT, which will act as arbitrators between the parties.

If violations to freedom of expression are proven, fines of 89.62 million pesos, equivalent to 4.4 million dollars, are foreseen. Likewise, an obligation is imposed on individuals or legal entities that are providing social network services, which must request the Institute the authorization to provide the social network service within 15 business days from the entry into force of the guidelines and must submit for approval of the Institute the terms and conditions of the service.

Génesis Moyeda Salazar

Gloria Ponce de León & Hernández