CHILE Law and Practice Contributed by: Franco Acchiardo, Francisca Castro, Hugo Prieto and Manuel Diumenjo, Clyde & Co Chile
Integrated Reporting and ESG Disclosures Under Norma de Carácter General (NCG) No. 461, publicly traded companies are required to include disclosures on corporate governance, climate-related risks, and sustainability prac - tices as part of their annual reporting. These ESG disclosures are aligned with international standards and seek to promote transparency on non-financial risks. Sector-Specific Reporting Companies operating in regulated sectors - such as banks, insurance companies, and pension fund administrators - must also comply with industry-specific reporting obligations, includ - ing periodic risk assessments, capital adequacy reports, and liquidity metrics, as established by the respective regulators and CMF rules. Closed corporations are not subject to public reporting requirements before the CMF. How - ever, they must prepare and submit their annual financial statements and reports for approval by the ordinary shareholders’ meeting, which must be held within the first four months of the year (ie, by 30 April). 6.2 Disclosure of Corporate Governance Arrangements In Chile, publicly traded companies are required to disclose their corporate governance arrange - ments through their annual reports, sustainability disclosures, and other regulatory filings, primar - ily under the supervision of the CMF. Annual Corporate Governance Disclosure Public companies must include in their annual report ( Memoria Anual ) detailed information on: • board composition and structure; • board committees and their functions; • executive compensation policies;
regulations - to identify and report their ultimate beneficial owners. Institutional Investors and Stewardship Institutional investors such as pension funds (AFPs) must follow investment regulations issued by the Superintendencia de Pensiones and may be subject to additional reporting requirements on their voting behaviour and stewardship poli - cies, ensuring alignment with responsible invest - ment practices. 6. Corporate Reporting and Other Disclosures 6.1 Financial Reporting In Chile, companies are subject to annual and periodic financial reporting requirements that vary depending on whether they are publicly traded or closely held, as regulated primarily by the LSA, the LMV, and applicable regulations issued by the CMF. These reports must comply with International Financial Reporting Standards (IFRS). Annual Financial Reporting Publicly traded companies must submit their audited annual financial statements to the CMF within 90 days following the end of the fiscal year. These must include the balance sheet, income statement, cash flow statement, statement of changes in equity, and explanatory notes, along with the report of the external auditor. Quarterly Reporting Issuers must also submit unaudited quarterly financial statements within 60 days following the end of each quarter. These updates allow the market and regulators to monitor the company’s financial position, performance, and material changes.
151 CHAMBERS.COM
Powered by FlippingBook