May 23, 2024

Derivative Action: Yes, But Not Like This

Asuntos Legales
Maria Alejandra Ortiz
Litigation and arbitration attorney María Alejandra Ortiz wrote an article for Asuntos Legales analyzing the implementation of the derivative action in the Colombian legal system through Decree 046 of 2024. Ms. Ortiz explains that, although this decree introduces necessary changes in corporate matters, such as the legal definition of administrators' conflicts of interest and the recognition of deference to business judgment, the incorporation of the derivative action through a regulatory decree is questionable. She also argues that this reform to the corporate regime should be the responsibility of the legislative branch and not the executive and warns about the possible damages that this situation could cause while the constitutionality of the regulation is being studied.

READ: Derivative Action: Yes, But Not Like This

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