Veto to the Commercial Code

Ecuadornews:

Four years it took the National Assembly to process and approve the new Commercial Code. The project updates, and adapts the regulations to the current demands and the dynamism of national and international commercial activity, after 113 years of rule that was issued in 1906.

The document, which in the next few hours will be sent to the Executive for sanction or objection, already has objections by Assembly members Henry Kronfle (PSC) and Gabriela Larreategui (SUM), who are already asking for a partial veto to the approved regulations.

“The Code has more good things than bad, so we voted for its approval, but now we expect the Executive to veto aspects that are not right,” Kronfle said.

He is concerned about the incorporation of regulations on Civil Aviation because there could be certain conflicts of interpretation about the regulations that the new regulations have with the Aviation Code; regulations on freight and interprovincial transportation for companies that have to be subcontracted; Doing business by telephone on a non-financial issue in the banking sector, an authorization is requested through an electronic means, that is, that there is a text approving what was agreed by telephone.

For her part, Assemblywoman Gabriela Larreátegui considers that there is an error in the issue of electronic invoicing, where it is established that it will be the Internal Revenue Service (SRI), which will not only determine that the invoice is valid, but also will control the transactions that are made with electronic invoices. “It seems to me that the SRI is not the entity that takes care of that, and it should be a private entity, such as the Stock Exchange with the shares,” she said.

On the positive side, it stimulates transactions for exchanges in transparent markets; incorporates electronic commerce, which includes the regulation of the birth of contracts by these means; adds new commercial contracts: those of franchises, distribution systems, mercantile services, provision of goods and services, the transfer of companies.

Regulates and consolidates the commercial lease and the lease with option to purchase at the end of the contract (leasing); modernizes the figure of insurance contract, gives greater value to the mercantile custom, protects consumer rights. Allows accounting in electronic media, eliminates prohibitions for women and adolescents to trade.

In addition, it adapts to the current mercantile needs; promotes fairness, justice, simplicity and modernization of accounting; there is freedom of commercial activity, transparency, good faith, legality of commercial activity, social responsibility, environmental and fair trade.

Regarding insurance, a more agile relationship is established between the insured and the insurer. Example, if tomorrow someone wants to have insurance and look for an insurer, the simple contact or simple verbal agreement already formalizes that you have insurance. The obligation that after 48 hours, the parties sign the contract, where the insured knows that he is insured in so many things and the insurer has so many responsibilities.

Executive

30 days to pronounce

In accordance with the constitutional and legal regulations, once the President of the Republic, Lenin Moreno, receives the bill approved by the Assembly, he will have 30 days to sanction or object to the approved regulations. If there is a partial veto, the text returns to the Legislature so that within a period of 30 days the texts approved by the plenary will be isolated or insisted on.

The context

Approval. The 1,348 articles, four general provisions, a transitory provision, a reform and the six derogations that the new Commerce Code has had an average vote of 118 votes in favor of the assembly members of all the legislative caucuses. (I)

Source: https://www.expreso.ec/economia/veto-codigo-comercio-psc-suma-HN2690867