The Covid-19 emergency, both locally and internationally, has generated the need of rethinking both the continuity of commercial activities and the compliance with the obligations set by law.
One of these requirements established by law is the annual meetings of Associations, Federations and Confederations, in accordance with the Law of Associations No. 218 of August 8, 1939. The obligation to hold such meetings during the weeks or months that have or will coincide with the national emergency, is set in the statutes of formation of these entities and even the mandatory appointment of a new Board of Directors could depend on such meetings, therefore, failing to hold such meetings could jeopardize the legal capacity to act on behalf of said entities.
Due to the current extraordinary situation, Law No. 9844 was approved and it included an authorization to automatically extend the management period of the boards of directors and comptrollers for all Associations, Federations and Confederations incorporated under the Law of Associations.
Associations, Federations and Confederations were also authorized to automatically extend, for up to six months, the appointment of these essential members that had expired as of March 1, 2020 and are to end by December 31, 2020. This extension will be in place unless the sanitary measures dictated by the Ministry of Health allow said entities to hold the necessary general meetings required by law. If necessary, it will also be possible to extend this extension for an additional period of 6 months.
These measures are taken in accordance with the general health restriction measures issued by the Costa Rican Government and are fundamental to guarantee the continuity of these organizations.
DV Business Solutions is always up-to-date and ready to provide timely legal and tax advice and assistance to our clients. If you have any doubts or questions with respect to these obligations, or any other issues that may affect your business, do not hesitate to contact us.
Socio / Partner
Socio / Partner