The General Corporations and Partnerships Law (LGSM) requires all companies in Mexico to hold an annual shareholders’ or partners’ meeting within the first four months following the close of the fiscal year.
This meeting formally approves the financial statements of the preceding year. However, the Annual Assembly is far more than a mandatory compliance step—it is a cornerstone of sound legal, fiscal, and administrative corporate operation.
What Happens if the Annual Assembly Is Not Held?
Failure to comply with this obligation may lead to significant consequences, such as:
• Direct liability for directors, managers, or administrators
• Loss of continuity in corporate decision-making
• Obstacles in accessing financing
• Governance deficiencies identified in accounting or regulatory audits
• Imposition of fines and administrative penalties
Benefits of Complying with the Annual Assembly
When conducted properly and on time, Annual Assemblies can become a strategic advantage for the company because they:
• Reinforce the legal certainty and corporate standing of the entity
• Promote transparency and orderly administrative management
• Strengthen internal controls and corporate governance
• Build trust among partners, investors, authorities, and third parties
• Facilitate long-term financial planning and decision-making
An Opportunity to Strengthen the Company
Annual Assemblies should not be viewed merely as a legal formality, but rather as a corporate governance tool that fosters stability, accountability, and sustainable growth.
At Roqueñí Abogados, we help companies transform a statutory requirement into a comprehensive corporate strategy that strengthens their position in the market.
More than legal advisors, we are your business partners.