Abstract
Corporate structure requirements refer to the options on how a foreign investor can legally structure foreign investment in mining projects in a particular country.
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Notes
- 1.
Section 601CD of the Corporations Act of 2001 state that a “(…) foreign company must not carry on business in [the Australian Commonwealth’s] jurisdiction unless it is registered under Part 5B division 2 of the Corporations Act of 2001 or it has applied to be so registered and the application has not been dealt with”. Although section 601CD subsection 2 Corporations Act of 2001 refers to: “(…) offering debentures in [Australia]” it is read to relate to the conduct of any kind of business.
- 2.
AMPLA (2014).
- 3.
Clayton Utz (2014).
- 4.
PWC (2013), p. 11.
- 5.
La Croix (1992), p. 216.
- 6.
Section 23(1) of the Companies Act 2008 states that “(…) external [foreign] company must register with the Commission within 20 business days after it first begins to conduct business, (…) within the Republic (…) as an external profit company, if, within the jurisdiction in which it was incorporated, it meets legislative or definitional requirements that are comparable to the legislative or definitional requirements of a profit company incorporated under [the Companies Act 2008].”
- 7.
Government of South Africa (2014), p. 90.
- 8.
Mokoduo Attorneys (2014).
- 9.
PwC (2013), p. 11.
- 10.
Section 23(3) of the Companies Act 2008 states that “(…) each (…) external company must continuously maintain at least one office in the Republic and register the address of its office (…) by providing the required information when filing its registration (…).”
- 11.
For a detailed description, please see supra.
- 12.
Department of Trade and Industry South Africa (2004).
- 13.
Nevin (2010).
- 14.
Smith (2010).
- 15.
Worthington (2002).
- 16.
Lapper (2010).
- 17.
African Business (2011).
- 18.
Clarke (2012).
- 19.
Section 11 of the MPRDA 2002 states: “A prospecting right or mining right or an interest in any such right, or a controlling interest in a company or close corporation, may not be ceded, transferred, let, sublet, assigned, alienated or otherwise disposed of without the written consent of the Minister, except in the case of change of controlling interest in listed companies.”
- 20.
Moore and Veldsman (2013), p. 85.
- 21.
Leon (2013).
- 22.
Article 19 of the Mining Law 2001 states “Las personas jurídicas extranjeras podrán, a través de representante ante domiciliado en Colombia, presentar y tramitar propuestas. Para la celebración del contrato de concesión deberán establecer una sucursal, filial subsidiaria, domiciliada en el territorio nacional. (…). Deberán asegurar debidamente ante la autoridad concedente, las obligaciones que contraigan en el país, bien sea con la garantía de la persona beneficiaria de la obra o servicio o con el aval de una entidad bancaria o de una compañía de seguros que opere en Colombia.” [Foreign corporate persons will be able, through a representative domiciled in Colombia, to present and transact proposals. For the execution of the concession contract, a branch, affiliate or subsidiary is to be established, domiciled in the national territory. (…). They should duly assure to the granting authority, the liabilities contracted in Colombia, either by a guarantee of the work’s or service’s beneficiary or an endorsement of a banking institution or an insurance company that operates in Colombia.].
- 23.
Triana and Escobar (2014).
- 24.
Article 353 of the Código de Comercio 1971 states for the Sociedad de Responsabilidad Limitada [Limited Liability Company]: “En las compañías de responsabilidad limitada los socios responderán hasta el monto de sus aportes.” [In the limited liability company the shareholders shall be responsible up to the amount of their contributions.].
- 25.
Article 373 of the Código de Comercio 1971 for the Sociedad Anónima [Stock Corporation] states: “La sociedad anónima se formará por la reunión de un fondo social suministrado por accionistas responsables hasta el monto de sus respectivos aportes; será administrada por gestores temporales y revocables y tendrá una denominación seguida de las palabras “Sociedad Anónima” o de las letras “S A.”” [The stock corporation is formed by the creation of a corporation fund furnished by shareholders who shall be responsible up to the amount of their respective contributions; it shall be administered by temporary and removable promoters and shall have a name followed by the words “stock corporation” or the letters “S.A.”.].
- 26.
Article 10 of law 1258 of 2008 (Corporate Law Act), enacted December 05th, 2008 a Sociedad por acciones simplificada [Simplified Share Corporation]: “(…) podrá constituirse por una o varias personas naturales o jurídicas, quienes sólo serán responsables hasta el monto de sus respectivos aportes.” [May be constituted by one or more natural or legal persons who are liable only up to the amount of their contributions.]
- 27.
Triana and Escobar (2014).
- 28.
Article 507 Código de Comercio 1971 states: “La participación es un contrato por el cual dos o más personas que tienen la calidad de comerciantes toman interés en una o varias operaciones mercantiles determinadas, que deberá ejecutar uno de ellos en su solo nombre y bajo su crédito personal, con cargo de rendir cuenta y dividir con sus partícipes las ganancias o pérdidas en la proporción convenida.” [A joint venture is a contract by which two or more persons who are qualified as merchants take an interest in one or more determined mercantile operations, which one of them must execute in his own name and under his personal credit, with the duty to render account and divide the gains or losses with his partners in the agreed proportion.].
- 29.
Article 17 Mining Law 2001 states: “Cuando Uniones Temporales reciba concesiones deberán constituirse en figura societaria, con la misma participación que se derive de la propuesta presentada. También podrán presentar propuestas y celebrar contratos de concesión los consorcios, caso en el cual sus integrantes responderán solidariamente de las obligaciones consiguientes.” [When joint ventures receive concessions, those should incorporate a company, with the same shares that might result from the submitted proposal. The joint ventures may also present proposals and be granted concession contracts, in which case its members will be jointly liable (obligatio in solidum).].
- 30.
Article 469 of the Código de Comercio 1971 states foreign companies: “Son extranjeras las sociedades constituidas conforme a la ley de otro país y con domicilio principal en el exterior.” [Foreign companies are established in accordance with the laws of another country and having their main domicile abroad.].
According to article 471 Code Commercial: “Para que una sociedad extranjera pueda emprender negocios permanentes en Colombia, establecerá una sucursal con domicilio en el territorio nacional, para lo cual cumplirá los siguientes requisitos:” [In order that a foreign company may carry out permanent business in Colombia, it shall set up a branch domiciled in the national territory, and to this effect shall fulfil the following requisites:] “Protocolizar en una notaría del lugar elegido para su domicilio en el país, copias auténticas del documento de su fundación, de sus estatutos, la resolución o acto que acordó su establecimiento en Colombia y de los que acrediten la existencia de la sociedad y la personería de sus representantes, y obtener de la Superintendencia de Sociedades (…), permiso para funcionar en el país.” [Register with an official Notary in the place chosen for its domicile in the country, authenticated copies of the public instrument of its incorporation, its by-laws, the resolution or decree which authorized its establishment in Colombia and of the documents evidencing the existence of the company and the legal character of its representatives; and to obtain from the Superintendence of Corporations (…), a license to operate in the country.].
- 31.
Diaz Reus (2014).
- 32.
For a detailed description please see supra.
- 33.
Triana and Escobar (2014).
- 34.
Diaz Reus (2014).
- 35.
Triana and Escobar (2014).
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Roeder, R.W. (2016). How to Set Up? The Question of Corporate Structure Requirements. In: Foreign Mining Investment Law. Springer, Cham. https://doi.org/10.1007/978-3-319-31217-0_3
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