Debate about Independent Members on Issuer Boards of Directors Revived

Finance and capital markets attorney Camilo Gantiva Hidalgo participated in the article published by Asuntos Legales that examines the debate about the criteria for independence for members of the boards of directors of issuers in Colombia. The Law 964 of 2005 established the requirements for the composition of these boards, including six criteria to determine whether someone is considered independent. Various voices have reiterated the need to update this regulation as a result of the global financial crisis in 2008 and the pandemic, among others. However, Mr. Gantiva Hidalgo highlighted that the definition of independent members in the law is not very restrictive and that Colombia's Finance Superintendency recommends that issuers establish additional, more demanding criteria.

"Yes I think that it should be updated, but because of more than the 2008 crisis, because of what has been seen in local practice. Currently there are cases of people close to shareholders who can be legally considered independent members, but in practice are not," he commented.

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