JUNE 2009 EDITION ARCHIVE
Legal Updates
Mexico Adopts Important Reforms to Its Commercial Code and Business Associations Law
Important revisions to the Mexican Commercial Code and General Law of Business Associations were published in the June 2, 2009 edition of the Mexican Official Journal of the Federation. The revisions come in the form of a Decree amending articles 19 and 21, sections V, VII and XI of the Commercial Code and articles 177 and 194 of the Business Associations Law (LGSM by its initials in Spanish). The Decree is effective June 3, 2009 and contains the following obligations and provisions applicable to... [Read More]LEGAL UPDATES
Mexico Amends Public Sector Procurement and Public Works Laws On May 28, 2009 various amendments to Mexico's Acquisitions, Leasing and Public Sector Services Law (Ley de Adquisiciones, Arrendamientos y Servicios del Sector Público or by its initials in Spanish, LAASSP) and the Public Works and Related Services Law (Ley de Obras Públicas y Servicios Relacionados con las Mismas or by its initials in Spanish, LOPSRM). These amendments will enter into force thirty (30) calendar days... [Read More]Business & Politics Outlook
POLITICAL AND BUSINESS OUTLOOK
Political Thermometer Recent polling data continues to show strong approval ratings for President Felipe Calderon. In fact, his approval by Mexican citizens is one of the highest ratings in the Americas. While polls show his approval rating has dipped one point (from 66.4% to 65.4%) from the prior quarterly period, such small decrease may be explained by the political atmosphere in Mexico in the time leading up to the next month's mid-term elections. Mexico will elect the entire lower House... [Read More]Economic Indicators
Economic Indicators
Peso/Dollar Exchange Rate: The quoted exchange rate as of June 11, 2009 was $13.4581 pesos per dollar.
Mexican Stock Exchange: The Mexican Stock Exchange (BMV) closed on June 11, 2009 at 25,392.25 points.
Interest Rates: On June 11, 2009, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 5.3100.
Feature Website
300 PALABRAS by Dr. Mario Melgar-Adalid
"To Vote or Not to Vote?" That Is the Question Mexico's democracy currently faces a dilemma. With just a few weeks to go before mid-term elections for congressional seats in Mexico's lower House of Representatives of the Federal Congress, opinion leaders, politicians, journalists and the general public have expressed their disappointment with political parties and their corresponding candidates by proposing that voters cast blank ballots. This is a problem for the Federal Electoral... [Read More]Mexican Production Costs Are Lower than China and India, According to Study by AlixPartners
The business consulting and analysis firm AlixPartners has for several years published a study analyzing production costs for offshore manufacturing of goods conducted in different countries. The study takes into account factors such as labor costs, exchange rates, transportation costs, raw materials cost and availability, and customs procedures. In accordance with the study recently published by AlixPartners, in 2008 Mexico gained the top spot for the country with the lowest cost of production... [Read More]Mexican Attorney General's Office Has New Governing Law
On May 29, 2009 the new Organic Law of the Federal Attorney General's Office (Ley Orgánica de la Procuraduría General de la República or by its initials in Spanish, PGR), was published in the Official Journal of the Federation, which substitutes the previous law enacted on December 27, 2002 and formalizes the closing of Mexico's Federal Investigation Agency (Agencia Federal de Investigación or by its initials in Spanish AFI), and creates a new police investigative... [Read More]Amendments to Article 16 of Mexico's Federal Constitution regarding Privacy Guarantees for Personal Data
The Official Journal of the Federation published on June 1, 2009 a decree adding a second paragraph to Article 16 of Mexico's Constitution, which became effective the day after publication. The amendment is designed to raise the privacy protection of personal data to the highest level of Mexico's national legislation. Through this reform, a new Constitutional level guarantee known as the "Guarantee of Protection of Personal Data" is created, which grants and recognizes the rights... [Read More]Amendments to Mexico's Expropriation Law
On June 5, 2009 amendments to Articles 1, 2, 3, 4, 5, 6, 7, 8, 20 and 20 bis of Mexico's Expropriation Law (Ley de Expropiación) were published in the Official Journal of the Federation, which include as part of the definition of a cause of public necessity, the construction of public infrastructure works and the provision of public services related to concessions, agreements or any other legal act. The intent of the legislature was to create a new cause of public necessity as an indispensible... [Read More]Amendments to Mexico's General Law of Business Associations and Commerce Code
On June 2, 2009 Mexico published important amendments to Articles 19 and 21, Sections V, VII and XI of the Commerce Code and Articles 177 and 194 of the General Law of Business Associations (Ley General de Sociedades Mercantiles or by its initials in Spanish, LGSM) in the Official Journal of the Federation so that, effective June 3, 2009: (i) registration with the Public Registry of Commerce is obligatory upon all business associations and maritime vessels, and optional for individuals engaging... [Read More]Guerrero the Only State in Mexico to Recognize "Fractional Ownership" Property, Known as “Multi-Property” under Guerrero Law
The State of Guerrero's Congress has for some time regulated "Fractional Ownership" or "Fractioned Property" projects under its Timeshare System Regulation and Development Law of the State of Guerrero (Ley de Regulación y Fomento del Sistema de Tiempo Compartido, the "Law"). The law defines "Multi-Property," a name which was given by the Guerrero State Congress to fractional ownership property, such as the right of all owners of a parcel of real... [Read More]