Application of the roles of de facto and hidden administrators in traditional Ecuadorian companies: on the need for their regulation

Authors

  • Mateo Vicente Landívar Chávez Pérez Bustamante & Ponce PBP

DOI:

https://doi.org/10.18272/ulr.v10i2.2764

Keywords:

corporate law, administrators, officious agency, simulation, agency problems

Abstract

This paper explored axiological and deductive methodologies to analyze the usefulness of adopting the figures of de facto and shadow directors. Although the current Ecuadorian scenario recognizes them for all companies, its implementation is recent since, previously, they were only recognized in the context of the simplified corporations. Its regulation has provided greater legal certainty for shareholders and other actors related to a company. Therefore, according to this research, the recognition of these figures in traditional companies makes it possible to mitigate the most frequent agency problem that Ecuador and Latin America must address: the conflict of interest between controlling and non-controlling shareholders. The definitions provided by jurisprudential decisions of the United Kingdom, legislation of the European Union and closer examples such as Colombia, were used as a reference to put both figures in context. The analysis concludes that the implementation of these figures is, in fact, extremely valuable.

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References

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Published

2023-10-05

How to Cite

Landívar Chávez, Mateo Vicente. “Application of the Roles of De Facto and Hidden Administrators in Traditional Ecuadorian Companies: On the Need for Their Regulation”. USFQ Law Review, vol. 10, no. 2, Oct. 2023, doi:10.18272/ulr.v10i2.2764.

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Papers

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