Ecuador: Fines For Late Communication Of Stock Transfers To The Superintendence Of Companies, Securities, And Insurance. Are There Legal Grounds For This?

Last Updated: 16 August 2017
Article by Nathalie Viteri Jiménez

The Regulations for the Imposition and Collection of Fines whose target corresponds to the Superintendence of Companies, specify restrictively those cases in which the fine set forth in Article 25 and others of the Companies Act is charged, and, there is no fine among these for late notification to the Superintendence of Companies of the transfers of shares and equity interests made; therefore, the collection of a fine on these grounds (Article 21 of the Companies Act) invoking Article 25 of the Companies Act is not appropriate.

In 2016, the Superintendence of Companies issued a series of administrative resolutions to sanction, with a fine of one basic minimum wage, those company directors who are tardy to notify (after 8 days as of registration on the books) the transfers of shares or equity interests via the institutional website; based on Article 25 of the Companies Act, and from this article, specifically taking a general phrase: "Should the Superintendent not receive the documents to which the preceding articles refer in a timely fashion..."

This sanction does not refer to the preceding 24 articles logically, but rather Article 25 itself states, it is upon the lack of timely submission of the balance sheet, income statement, roster of directors, legal representatives, partners, or manager's and statutory auditor's report, etc. of the companies subject to its control (Articles 20 and 23 of the Companies Act), which must be submitted in the first quarter of each year.

The Regulations for the Imposition and Collection of Fines considers as taxpayers the directors, legal representatives, company, etc. that adapt their behavior to the one stipulated in Article 25 (et al.) of the Companies Act and enumerates the restricted cases in Article 2 therein.

In each one of the cases described in Article 2 mentioned above, it can be observed that a fine for the tardy notification of the transfer of shares or equity interests to the Superintendence of Companies (Article 20 Companies Act), as a mere notification does not affect the rights or obligations of the new partners or shareholders, or the control agency; as the obligation to submit the roster of shareholders or partners commences in the first quarter of each year, i.e., what is sanctioned in accordance with Article 25 of the Act, and according to the Regulations for Imposition of Fines created for the application of Article 25 mentioned above, is the lack of compliance with that obligation (Article 20 Companies Act); but not the mere notifications of transfers that arise during the rest of the year; as the Act provides that the transfer of shares becomes effective against the company or against third parties as of its registration in the Stock Ledger, and not as of the notification to the regulatory agency; however, and without being provided by the Regulations, starting in 2016, the delay in that notification began to be fined, as if that occasioned injury to shareholder rights and duties.

The Institution itself, on the roster of shareholders or partners that it provides via its website in the part that states:

"It is certified that, this roster of partners granted by the Companies Registry of the Superintendence of Companies, is drawn up in accordance with the provisions of Articles 18 and 21 of the Companies Act, which neither extinguishes nor creates rights with respect to the ownership of the equity interests (...) this corporate control institution does not assume with respect to the veracity and legality of the assignments of equity interests, any liability whatsoever and it holds harmless the variations of the ownership of said assignment that may occur in the future, as in accordance with the provisions of Article 256 of the Companies' Act, Section 3, company directors are jointly liable to the company and third parties: "On the existence and accuracy of the company books (...)."

–the boldface and underlining are the author's–This ratifies that the sole manner of evidence of those who are the shareholders or partners of a company, as provided by the Act, is the Stock Ledger or Equity Interest and Partners' Ledger as well as in the case of the limited companies, the transfer instruments of equity interests; but not the "notification" that the legal representative makes to the Superintendence of Companies, therefore, this does not affect any right, and the sanction for tardy notification to date, has no support, neither in the Act nor in the Regulations created for the imposition of fines determined in the invoked Article 25.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.