MEXICO Law and Practice Contributed by: Alejandro Sainz, Gabriela Avendaño and Daniel Pardo, Sainz Abogados
7.3 Duties and Personal Liability of Officers Please see 7.2 Personal Liability of Directors . 7.4 Other Consequences for Directors and Officers Please see 7.2 Personal Liability of Directors . 8. Setting Aside or Annulling a Transaction 8.1 Circumstances for Setting Aside a Transaction or Transfer Pursuant to the Concursos Law, some transactions may be invalidated if entered into during the period starting on the day which is 270 calendar days prior to the declaration of insolvency by a competent court. Such period can be extended to up to three years under some situations regulated by law, and would be doubled for intercompany transactions. Fraudulent claims should be filed before the Bankrupt - cy Court and processed as ancillary proceedings. Any creditor, intervenor, conciliator or liquidator is entitled to file such claims.
8.2 Claims to Set Aside or Annul a Transaction or a Transfer
Intentionally fraudulent transactions and certain other transactions may be set aside or declared void when it is established that the debtor received inadequate consideration. The following transactions are presumed to be a fraudulent transfer, unless the debtor can prove good faith: • creation of new security interests or the increase of any existing security interests if the original obliga - tion did not provide for it; • payments in kind when such form of payment was not originally agreed; and • transactions entered into by a debtor with related individuals or entities, such as their spouse, cohab - iting partner, relatives, members of the board or decision-making individuals within the business, or companies where at least 51% of their capital stock is owned or voted by any of the foregoing individuals. If the claim is successful, the party must pay damages and return any value to the debtor’s estate.
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