Requirement to Exhaust the Right of First Refusal in Movable Guarantees Over Shares

Corporate attorney Miguel Lozano published an article in Asuntos Legales about the requirement to exhaust the right of first refusal in movable guarantees over shares. He highlights that although Colombia's Law 1676 of 2013 expanded access to credit by allowing movable guarantees on shares, the right of first refusal that protects partners and shareholders can create complications when enforcing such guarantees. Mr. Lozano recommends that secured creditors carefully review the statutory provisions related to the negotiability of shares to avoid legal issues and difficulties in enforcing payment.

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