COLOMBIA Trends and Developments Contributed by: Clare Montgomery, Karen Santamaria and Silvana Aroca, Baker McKenzie
Conclusion The increased focus of Colombian authorities on corporate governance reflects a global trend towards greater transparency and account - ability in business management. The measures implemented by the Superintendence of Com - panies, DIAN and other regulatory entities aim to ensure that Colombian entities operate ethically and transparently, fostering a more reliable and competitive business environment. While these changes present significant chal - lenges for companies in terms of compliance costs and adaptation to new regulations, they also offer opportunities to improve transparency, accountability and competitiveness. By adopt - ing these best practices, companies will not only avoid sanctions but will also have the chance to strengthen their market position and gain the trust of investors while promoting diversification of funding sources and therefore more dynamic capital markets. In this context, it is crucial for Colombian enti - ties to take corporate governance seriously and strive to comply with established regulations. There are still a significant number of chief executive officers and directors of boards with very limited knowledge of corporate govern - ance. Transparency and accountability are not only regulatory imperatives but also key factors in the long-term success and sustainability of any organisation. Companies that adopt these principles will be better placed to thrive in an increasingly demanding and competitive envi - ronment.
governance obligations. In April 2024, an inter- administrative agreement was signed between the Superintendence of Companies and DIAN to share information reported by entities in the last year on the register of ultimate beneficial own - ers. The agreement was aimed at starting admin - istrative investigations to determine individuals with decision-making power over companies as well as enhance the control over money laun - dering, international bribery and responsibility in corruption schemes. The Superintendence of Companies has gener - ally taken a much more active role in holding administrators of Colombian entities to account for compliance with their legal and statutory obligations as well as the statutory auditors for failing to monitor and report on deficiencies. In recent years, numerous investigations of com - panies, their administrators and auditors have resulted in significant sanctions for those who have failed to comply with their responsibilities. These sanctions not only have a direct economic impact but also send a clear message to the business community about the importance of adhering to proper corporate governance prac - tices. The investigations have highlighted cases involving lack of transparency, failure to disclose conflicts of interest, failure to prepare and give access to financial statements and failure to pro - vide timely and accurate information to share - holders and other irregularities that might have previously gone unnoticed. This increased level of involvement by the Superintendence of Companies has created an expectation that companies and their adminis - trators and auditors must be more diligent and proactive in their governance practices and plan and implement improvements to avoid delays in meeting tight corporate filing deadlines.
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