Blog AV
A forum fed by social networks for information and debate on current legal issues.
2017-11-16

There are many types of contracts in the mining sector. This article deals with the agreements related to the acquisition of mining properties. These are ordinary commercial documents that deal with a particular asset, a mining property. We will describe the main agreements related to the acquisition of mining properties. The most common contracts are the purchase option, "joint venture", "opt-in" or "farm-in". These contracts are usually applied based on legislation from Canada, the United States or Australia, countries with a historical development of mining law. Therefore, this article describes these agreements in which one party may acquire from another a mining property, either in whole or in part, for the purpose of exploring that property and, if successful, proceeding to the development of a mine.

2017-11-09

To continue we inform our readers about the corporate and labor obligations that must be met in the month of December.

2017-10-23

ARCOM issued (i) the mandatory requirements for obtaining the Export Certificate and (ii) authorizes the contracting of goods, works or services including consulting services, through the emergency procedure, to solve the sinking of the surface in the urban center in the city of Zaruma.

2017-10-17

The Norwegian Petroleum Fund is an example of saving and investing the income from exploitation of non-renewable natural resources. What would happen if Ecuador were to replicate it for large-scale mining? The two countries began their exploration and subsequent oil exploitation at the same time and both applied a control over the resource, earning a large income. Now the question arises as to why Norway now has a fund that in September 2017 reached the historical value of US $ 1 trillion, while Ecuador is again indebted and continues to be a developing country. For the expected revenues from large-scale metal mining, a Mining Fund should be created in similar but identical conditions as the Norwegian. For its constitution the fund must have solid principles, based on ethics and responsibility towards the country and its people. The fund should not only serve as a savings account, but also as an international investment medium, diversified and seeking a sustained growth of resources. Ecuador´s new era of large-scale mining offers the opportunity to use its income from a finite income in the Mining Fund whose capitals can be used properly and sustainably for the benefit of present and future generations.

2017-10-11

The article provides an analysis of asset recovery issues that could be considered as part of a referendum to amend the Constitution in Ecuador, as part of afforts to win the fight against corruption. The repatriation of assets is key in preventing corrupt acts. In this post we suggest some legislation reform that may be considered.

2017-09-27

Andrade Veloz has been ranked in Chambers & Partners for fourth year in the areas of Dispute Resolution, Natural Resources and Commercial/Corporate Law.

2017-09-20

Before initiating an arbitration proceeding, we must do the math. Mathematics can help us make our decisions more objective and safeguard the interests of our clients. In this post we explain how to conduct this analysis.

2017-09-13

Crowdfunding is a method of capital formation for financing through collections, through Internet platforms, usually web pages, or other electronic media such as mobile applications. Following the global trend, in Ecuador a growing number of projects seek funding, particularly for the implementation of entrepreneurship and innovation projects. Similar to what has happened in other countries of the region and the world, in Ecuador have started operating crowdfunding platforms. Technology and entrepreneurship move faster than legislation, sometimes despite the risks involved. Currently, in Ecuador, the platforms have started their activities with the same unknowns as in those countries and as in others as well. At the moment there have been no changes to the legislation to facilitate the use of crowdfunding. However, in Ecuador it is possible to apply crowdfunding with existing national legislation without the need for reforms for its development.

2017-08-31

Organized crime has ventured into Arbitration. How can we recognize sham arbitrations?  What should lawyers do in these cases? What can arbitrators do? In this blog post we discuss about "Arbitration Laundering".

2017-08-09

The Guide for Investing in the Mining Sector in Ecuador is a unique publication that offers timely and up-to-date information on all areas of interest to the mining investor. Through this work, Andrade Veloz seeks that the most relevant information for the mining industry is available to all its stakeholders. The Guide contains a description of important issues of national legislation applicable to the mining sector in Ecuador, addressing regulatory, environmental, tax, labor, corporate, foreign investment issues, among others.

2017-08-01

Ministerial Agreement No. 2017-019, published in Official Gazette No. 46 dated July 28, 2017, issued the "Instruction for the Granting of Metallic Mining Concessions under the Small Mining Special Regime in Petition and Offer Processes" (hereinafter referred to as "Instructive"). The Instructions revoked the procedures for Petition and Offer under the Instruction for the Granting of Mining Concessions for Metallic Minerals (Official Register No. 722 of March 30, 2016). The new regulations allow for greater clarity on the concession processes under the small mining regime.

2017-07-27

2017-07-21

Learn of the changes to the rules governing the granting of mining concessions for metallic minerals in Ecuador

2017-07-18

The Regulatory Board of the Ecuadorian Competition Law (Junta de Regulación de la Ley Orgánica de Regulación y Control de Poder de Mercado) issued new rules to regulate the market of sales of electronic devices to the final consumer. But are such regulations necessary? We invite you to know our opinion.

2017-05-08

If you are interested in working with us, send us your application unitl Monday, July 17, 2017.

2017-07-04

Arbitration, in addition to requiring a thorough knowledge of law, experience and technique invites us to make use of sciences such as mathematics, economics and psychology. In this blog entry we briefly analyze arbitration litigation under Game Theory, a branch of applied mathematics that helps us understand human behavior in decision making and strategic planning.

2017-06-29

Should I accept a settlement for $ 500 today instead of waiting two years for a $ 800 arbitration award? Which scenario makes the most economic sense? Know the tools to predict when is arbitration worth the hassle.

2017-06-28

Consumption of organic, biological or natural products is booming; However, are these products really ecological, biological or natural? What regulations exist to prevent consumer deception with products that are cataloged in a way, and they are not?

2017-05-24

The use of "#hashtag", is now used as a brand to attract new consumers.

2017-05-23

Ecuador recently denounced the Bilateral Investment Treaties (BITs) with several countries (including USA, China, Canada, Germany, France, UK, among others). Unfortunately, the decision was based on a series of myths that were replicated and exacerbated by some state entities. In this note we describe the 7 myths on which such decision was based.

2017-05-09

Ecuadorian National Court finishes with the discussion related to the finality of the decision issued in an arbitral awards annulment proceedings. 

2017-05-08

If you are interested in working with us, send us your application unitl Friday, May 12, 2017.

2017-04-24

The Environmental Code will be in force in April 2018. These are the 5 most relevant features for extractive activities brought by this Code.

2017-04-18

Recently, the Ecuadorian Competition Authority has held several press conferences to announce the acceptance of Infringement Commitments. These press conferences have been controversial. This article resumes one of the most outstanding press conference, in a case involving the Competition Authority and a mobile phone company.

2017-03-20

The PDAC Convention 2017 took place this month in Toronto, Canada. Ecuador had a great exposure during the Ecuador Day. These are the foreign investors’ perspectives after the Convention.

2017-03-15

2017-03-03

 

Ecuador is committed to fight climate change through reducing deforestation. The REDD + Action Plan seeks the collaboration of the private sector in achieving its objectives. In addition, the country received non-reimbursable cooperation of $ 41.2 million from the Green Climate Fund.

2017-02-17

2017-02-09

On March 1, 2017, the amendments of the ICC Arbitration Rules will be enforce. This amendments include the new expedited procedure rules apply to claims that do not exceed US$ 2,000,000. 

2017-02-02

This article contains a reflection on the different roles of judges.

2017-01-31

The new provisions of the IRS for the information of corporate structures will come into effect on February 1, 2017. We invite you to learn about what you need to know to comply with this obligation.

2017-01-19

2017-01-17

Elections are coming and the Presidential Candidates are discussing their proposals. What is their position about mining? (Text in spanish)

2017-01-16

Every year, the Superintendency of Companies, Securities and Insurance, and the IRS, request to the companies the report on some specific points.

Since January, there is a new Resolution from the IRS regarding the "Rules that establish the conditions for the corporate composition"

2017-01-10

Shareholder agreements are not common in Ecuador despite its importance.

 

These agreements regulate the relationship between partners or shareholders in a 'reciprocal manner and without the company’s intervention. This article analyzes the validity of such agreements under Ecuadorian law and suggests some measures to be taken.

2016-12-09

Companies in Latin America and the world are looking for businesses in the region. Its high potential of natural resources is one of the elements that make this part of the continent attractive for investment.

2016-12-07

The bill, labeled as economically urgent, brings a very interesting amendment for the mining investors in Ecuador. (Text in Spanish) 

2016-11-25

On November 22, 2016, the Constitutional Court decided that the Trade Agreement with the European Union must complete the Constitutional Assessment process and a further approval by the Parliament.

2016-11-21

Once the merger between AB InBev and SABMiller was approved, the Ecuadorian competition authority issued, ex officio, an unexpected order to divest the trademark “Club”. Should we assume that the initial decision was wrong?

2016-10-27

On September 23, 2016, the new rules for the determination of fines for violations under the Competition Act were issued. Learn more about this on our Blog.

2016-10-26

The recently enacted law for prepaid health services and insurance coverage for health care has established a series of amendments on reimbursement for medical care in institutions of the Comprehensive Public Health Network, new contractual prohibitions regarding medical pre-existing conditions, pricing, exclusions; among others. Learn about the most important aspects of this new law.

2016-10-24

The World Bank published the Benchmarking Public-Private Partnership Procurement 2017, a comparative study about PPP made in 82 countries around the world. Ecuador has been included in this study.

2016-10-10

Tax reliefs and benefits, under certain circumstances, could constitute anti-competitive state aid, as the European Commission recently concluded in the Apple case. In contrast, Ecuador recently eliminated such tax benefits from the list of potential state aid.

2016-09-28

2016-09-26

The creation of the Mining Ministry has become the basis for the mining industry development in Ecuador. It is now the time to place this industry as one of the most relevant for the country’s economy.

2016-09-15

On August 22th, 2016 the Competition Act’s Regulations was amended. These new regulations brought important changes. For instance, it settled the conflict between the Regulatory Board and the Competition Authority, deciding who has the legal capacity to issue regulations with a broad scope.

2016-09-01

Ecuador’s new procedural law establishes a procedure for enforcement of foreign arbitral awards that would violate international law. See the details here.

2016-08-17

It has been issued the regulations for the Young Work Promotion´s Act. It is now mandatory to hire young workers, depending on the employer's activities and number of workeres.Here are the details.

2016-08-11

The Ecuadorian Competition Authority issued the provisions to govern the procedure and conditions for firms to access the leniency and reduction of fines regime provided by the Competition Act. Learn more about this regulation if you are considering collaborating with Ecuadorian Competition Authority.

2016-08-10

The M&A process takes mainly 6 steps. However the whole operation could take some months until the closing stage. This process could be complex. That is why it is necessary to be careful when starting a negociation. Check this chart out if you are involved in a M&A transaction.

2016-08-02

A few days ago the arbitral award in the case Copper Mesa v. Ecuador was published. This is the first investment arbitration that the Ecuadorian state has faced in the mining industry. Both parties were found guilty: Ecuador for expropriating private property and Copper Mesa for acting with "unclean hands".

2016-08-01

We present the 10 most relevant labor amendements issued since 2015. Do these amendments affect your company?

2016-07-29

The Competition Authority has implemented a new digital system for the substantiation of processes and information management.  The request of electronic mailbox for proceedings notifications is mandatory for lawyers and parties to investigation proceedings.

2016-07-11

On July 1, 2016, President Correa has formalized the dissolution of the public enterprise: ENFARMA EP, as announced in the latest Report to the Nation, when the closure of several Ecuadorian public companies was announced. 

2016-07-05

The Ecuadorian competition authority has devoted great effort to activities that have little connection with its main task: to ensure transparency and efficiency in markets and promote competition. For the debate, we ask readers if a clearer focus of the authority would have helped to cover certain gaps in its role.

2016-07-01

Critiques made to the utilization of mercury in the mining industry are reasonable. Its use produces terrible consequences to people and the environment. The Minamata Convention, having Ecuador as a member, seeks its eradication. Here is an analysis of the effects of mercury and the alternatives to its use. (text in Spanish)

2016-06-27

In June 2016, the U.S. Supreme Court upheld a ruling that would allow Chevron to enforce an arbitration award that orders Ecuador to pay USD 93 million for breaching the bilateral investment treaty entered into with the U.S. More details here.

2016-06-23

The operators of the insurance industry will have to adapt in the coming months to the changes introduced by the Monetary and Financial Code, in respect of minimum paid-in capital requirements. Learn about the important deadlines and avoid penalties (Text in Spanish).

2016-06-15

Identifying conflicts of interest between clients is difficult in the exercise of the profession of lawyers task. Here is a guide for identifying conflicts and recommendations for proper handling.

2016-06-13

The legal amendments promoted by the Ecuadorian Government and the marketing of Ecuador as a Mining country are now giving good results. New investors are getting interested in doing mining in Ecuador, but, is this the right time to invest? 

2016-06-09

2016-05-30

The Co-responsibility Tax Act after the Earthquake that hit Ecuador on April 16th is now in force. It might appear that it regulates issues that go beyond the real effects of the earthquake. What is its real scope? (text in spanish)

2016-05-26

Yesterday, the Mayor of Quito let the investors know about the "Investment Portfolio". 

With this, the Municipality of Quito tries to make private investors join their capitals with the Municipality in order to improve the competitiveness of the city.

2016-05-23

The recent approval of the merger between AB InBev and SABMiller by the Ecuadorian competition authority raises several questions. In this note we share our views on a decision that, in our opinion, is fragile.

2016-05-18

We present a synthesis of the new processes to enable certificates to provide telecommunications services under Resolution No. 03/04/2016 of ARCOTEL.

2016-05-16

The insurance industry is a highly regulated sector. This regulation, however, would not be enough to cope with some market failures. This is why competition law has been applied worldwide to the sector (with certain exemptions). What are the hot topics of regulation and competition law in the insurance industry? Here is the answer.

2016-04-12

Video recordings without prior information to workers are illegal. But what happens if the employer suspected misconduct of any of its employees?

In Ecuador, this issue has not been addressed by the courts. However, in countries like Spain, this subject has already been solved. Consequently, what the courts have said about this subject can help in many ways if a case is presented in Ecuador.  

2016-05-09

An anticompetitive behavior carries the imposition of substantial fines for both undertakings and their managers. Find here: what these sanctions are? And, what are the maximum amounts of the fines?

2016-04-29

Today many entrepreneurs look for ways to expand their business in order to become more competitive  in an increasingly difficult market. One solution is the acquisition of assets from competitors or merging with them. From the second decade of this century, M & A operations have been instrumental in the growth of the industry in general.

2016-04-29

Today many entrepreneurs look for ways to expand their business in order to become more competitive  in an increasingly difficult market. One solution is the acquisition of assets from competitors or merging with them. From the second decade of this century, M & A operations have been instrumental in the growth of the industry in general.

2016-04-25

Who should (and usually) pay the costs incurred in arbitration? Can the winner always recover them? What costs can be recovered? Here is a brief analysis in connection to the interesting report prepared by the ICC on costs.

2016-04-22

The last amendments made to the tax regulations exceeded the incentives for the development of PPP projects. These regulations include rules, for instance, for the tax devolution for recycling bottles. Here is a brief summary of these amendments. (Text in Spanish)

2016-04-21

On April 20, 2016 the Hague District Court set aside the US$ 50 billion award in damages rendered against the Russian Federation on jurisdictional grounds. Find here the reasoning behind this ruling.

2016-04-20

 

We show you some ways in which lawyers can help before a natural disaster.

2016-04-14

Have you ever wondered what to do with your company if the economic crisis deepens? Do you know how to comply with your creditors in times of trouble? The bankruptcy proceedings can be a viable way to reach an agreement with creditors without closing your business.  

2016-04-13

The 63rd. edition of the Antitrust Law Spring Meeting of the American Bar Association Last was held last week in Washington D.C. This is one of the most relevant events on Competition Law in the region. The Competition Law team of Andrade Veloz was present. We extracted some considerations applicable to Ecuador.

2016-03-30

The last labor amendments introduced passed by the National Assembly were clearly intended to adjust the labor legislation to the economic reality of the country. Is Ecuador the first country to introduce these sort of amendments? Here is a summary of the relevant changes made to the legislation, along with a comparative analysis with the Spanish case (Text in Spanish).

2016-03-28

The Quito Arbitration Week will host three important events on international arbitration. More than 40 local and foreign renowned speakers will participate. Andrade Veloz will actively take part in these academic events.

2016-03-23

On March 11, 2016 , the International Court of Arbitration of the International Chamber of Commerce and the International Centre for Settlement of Investment Disputes, formalized a have formalized collaborative efforts to facilitate the use of their respective hearing facilities.

2016-03-17

The Regulations for Granting of Mining Concessions are now in force. This is the opportunity the Mining Industry has been waiting for, in order to make Ecuador a mining country. Here are 9 key facts to understand the content of such regulations. Procedures begin this monday, May 23rd 2016!

2016-03-10

Today, entrepreneurship in business can be done in different ways, one of them are startups. The financing of these new companies no longer rely on credit or bank loans, but visionaries who decide to invest in the short and medium term in them.

These companies are particularly focused on new technologies, but it does not mean that a start-up cannot give other services.

2016-03-09

The openning of the Mining Mapping in Ecuador is great news for the development of the mining industry in Ecuador. The Mining Ministry has announced the oppening from the Convention of the PDAC 2016, held in Toronto, Canada. With the contribution of the mining investors in Ecuador, an Intructive for the Conferment of Mining Concessions will be issued in the following days, making the openning come true. 

2016-03-07

The ICC recently announced that it will reveal the names of the arbitrators in cases administered under its auspices. Through this initiative, the ICC intents to promote greater transparency on the appointment of arbitrators. Other centers are expected to follow this trend.

2016-03-02

The Ecuadorian Competition Authority has the power to conduct inspections of the establishments of undertakings, in order to retrieve information for investigation proceedings for anticompetitive practices. Learn how these inspections work and what to do if you experience one of them.

2016-02-29

The Ministry of Industry and Productivity issued the new regulations to facilitate the labelling in Ecuador of imported products that do not meet labeling requirements of the Ecuadorian Technical Regulation. Under these, products should not be re-exported to be re-labeled in accordance to the Ecuadorian requirements. This measure was adopted in order to generate employment in Ecuador.

2016-02-24

Businesses are not intended to generate losses. Therefore, if an undertaking sells its products below its production cost, a presumption of predatory conduct arises. Learn how predatory pricing works, the tests used to measure this behavior and the circumstances in which, despite selling below the cost, there would not be anticompetitive conduct.

2016-02-18

The protection of personal data is a right recognized by the Ecuadorian Constitution. Mainly because of technological development, violations of this right occur without the affected even noticing them. To begin an adequate protection of this right, a deep analysis of this issue is required. Also, as it has been done in Europe (especially in Spain), it is necessary to create  doctrine and jurisprudence to stop these violations, especially those made by big companies, such as Internet search engines, which are constantly using our information without people’s consent or knowledge.

2016-02-05

How different are the Concessions and Public – Private Partnerships Regimes? This question aroused during the Ecuadorian Congress debate before passing the PPP bill. Here we analyze the answer.

2016-02-01

The companies that are involved in a M&A process consider different economic, corporate, commercial aspects. However, there is an issue that is not always seen by the firms, that is the prior authorization from the Competition Authority (Superintendencia de Control de Mercado). In this blog, we inform you under which circumstances a firm must obtain a required authorization from the Ecuadorian Competition Authority prior implementing the transaction.

2016-01-27

In the first months of the year the companies under the control and supervision of the Superintendence of Companies must comply with certain regulatory obligations. This note is intended to remind our clients about the information and processes that must fulfill with the authorities.

2016-01-25

The Public Private Partnerships Act is one of Ecuador’s main projects to attract foreign investment. When assessing a project it is common for investors to analyze the applicable dispute resolution regime. Unfortunately, the regime under said Act would not be effective. An amendment is necessary.

2016-01-21

All you need to know about the remission of fines and interest charges for delinquent employer obligations, since the publication of the Act for incentives for public – private partnerships and international investment.

2016-01-18

Ecuador and Swedish - Canadian Lundin Gold suscribed a letter of intent for the exploitation of the Mining Project Fruta del Norte. This is the first large scale project to be exploited in Ecuador. We bring you part of the reached agreements.

2016-01-14

Firms who have incurred in violations to the LORCPM (Competition Act) have the alternative to avoid the imposition of high fines through commitment to cease infringements. This kind of commitments are free and voluntary proposals, in which firms, in addition of stating they have violated the law, propose corrections to their behavior and undertake to adopt remedies addressed to compensate the damages that might have been caused to the market and consumers, in exchange of a reduction in the amount of the possible fines. This blog post addresses the main considerations that firms must take into account by the time of signing these commitments.

2016-01-13

Venture capital is a funding source widely used for many years in other countries. The aim with this figure is that the entrepreneurs, who do not have access to loans or credits in the financial system, can seek financing for their projects with the help of an investor. The investor injects capital to the company or entrepreneurial project in exchange of a minority shareholding for a temporal basis. Like this, new entrepreneurial projects can be in the market. Once these projects reach the equilibrium point, the investor withdraws the initial capital plus the profits generated by the share package. In Ecuador, governmental venture capital funds started in 2015. We expect this founding source will be useful for Ecuadorian entrepreneurs.

2016-01-12

Speaking of the Ground and Ancient Land Bill, which passed in Congress on January 7th, 2016, here is an analysis of the compatibility of Mining and Agriculture, having in mind that these two activities take place in country areas and have a common input. (Text in spanish)

2016-01-07

Learn about the incentives introduced in the Ecuadorian legislation to promote and maintain employment and productivity in 2016. Some interesting tax exemptions have been introduced, as well as different contracting modalities for certain industries. 

2016-01-06

The Public Private Partnerships Act is one of Ecuador’s main projects to attract foreign investment. When assessing a project it is common for investors to analyze the applicable dispute resolution regime. Unfortunately, the regime under said Act would not be effective. An amendment is necessary.

2015-12-14

Family businesses have a major role in the economy. That is why these structures should have different treatment from others legal entities. However, until such legislative progress occurs, there should be certain rules that allow family companies to operate successfully.

2015-12-09

It is usual that a merger and acquisition (M & A) negotiation begins with a letter of intent. The binding effect of these documents depends on its drafting and the applicable legislation. Therefore, professional advice is recommended before the execution of a letter of intent since if the document is signed without a complete understanding of the obligations assumed thereof, might affect the negotiation or the business itself.

2015-12-07
The pharmaceutical industry will always be sensitive to the state public health and competition policies. Ecuador has chosen to regulate it from an administrative point of view without noting that competition legislation could correct some market failures in a better way. In fact, some of these failures could have been generated by such administrative regulation.

This note lists the Top 10 competition concerns in this sector.
2015-12-03

2015-12-02

 

 

This article contains a list of key considerations for companies operating in the insurance industry, if they wish to undergo processes of mergers and acquisitions.

2015-11-26

Shareholder agreements are not common in Ecuador despite its importance.

 

These agreements regulate the relationship between partners or shareholders in a 'reciprocal manner and without the company’s intervention. This article analyzes the validity of such agreements under Ecuadorian law and suggests some measures to be taken.

2015-11-23

2015-11-20

2015-11-19

Learn the topics discussed at the Third Mining Congress organized by the Chamber of Mining and Andrade Veloz.

2015-11-09

La decisión sobre anulación en el caso Occidental c. Ecuador, notificada el 2 de noviembre de 2015, presenta varios asuntos jurídicos de interés, que nos invitan a la reflexión sobre qué hicimos bien y qué podríamos haber hecho mejor en la defensa del Estado. La decisión devela la trascendental influencia del voto disidente de la Prof. Stern y muestra el complejo razonamiento del Comité, al aplicar el estándar de proporcionalidad y al analizar las actuaciones de los poderes públicos. En este artículo se identifican los puntos de tensión de la decisión, que anticipamos requieren de un profundo análisis y que indiscutiblemente generarán interesantes debates académicos.

2015-10-12

Un tribunal arbitral de la Cámara de Comercio Ecuatoriano Americana abordó de manera directa la futilidad del agotamiento de la fase prearbitral, cuando es claro que, al existir una controversia entre las partes, difícilmente podrán llegar a un acuerdo amistoso en los procesos previos al arbitraje. De esta manera, el laudo dictado enfatiza sobre la naturaleza jurídica de las cláusulas escalonadas, mismas que tienen sentido cuando pueden cumplir con su función esto es, lograr un acuerdo amistoso en las etapas de negociación o mediación.

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©2017 Andrade Veloz Abogados.
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©2017 Andrade Veloz Abogados
Todos los derechos reservados