Cross-Shareholdings And Interlocking - orporate/Commercial Law - Mondaq Chile - Mondaq Business Briefing - Books and Journals - VLEX 649037073

Cross-Shareholdings And Interlocking

Author:Mr Claudio Lizana, Lorena Pavic and María José Villalón
Profession:Carey
 
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Law N° 20,945 (the "Law"), published on August 30, 2016, amended law decree number 211 (the "DL 211") which regulates anti-competitive practices in Chile. Two of the most significant changes that are introduced by the new antitrust law include defining the interlocking of directors and relevant executives as anticompetitive conduct, and the obligation to report the direct or indirect acquisition of more than 10% of a competitor.

  1. Interlocking

    The Law adds a new letter d) to the catalog of conducts in article 3 of DL 211, including as a new anticompetitive conduct the simultaneous participation of a person in relevant executive positions or as director in two or more companies that compete against each other, provided that the business group of each one of the companies has an annual income that exceeds approx. USD3.9 million during the last calendar year.

    A company is given 90 days from the end of the year in which the income threshold is surpassed to regularize the interlocking situation. If the term expires and the simultaneous participation in the positions remains, then the infraction will be deemed committed.

    This provision has a 180 day period of vacancy from the day of publication (August 30, 2016), after which it will enter into force.

    This provision is expected to generate debate as to the meaning of "competitor" and "relevant executive positions".

  2. Cross-shareholdings

    In the new article 4° bis of the DL 211, the Law adds the obligation to notify the national economic prosecutor (FNE) about the direct or indirect acquisition of more...

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