Mexican Investment Board

México, your partner for growth

Mexican Investment Board

EIGHTH TITLE

ARTICLE 37.- The Ministry shall be able to revoke the authorizations granted when there are acts performed in violation of the provisions hereof.

Acts, contracts or partnerships and by-law agreements declared null and void by the Ministry because they are contrary to the provisions hereof, shall have no legal effect between the parties and shall not be enforced before third parties.

ARTICLE 38.- Violations to what is set forth in this Law and its regulatory provisions shall be subject to the following penalties:
l.- In the event foreign investment performs activities, acquisitions or any other acts which require favorable resolution from the Commission, without having obtained such resolution, a fine ranging from one to five thousand wages shall be imposed;
II.- In those cases where foreign corporations customarily perform acts of commerce in the Mexican Republic, without having obtained prior authorization from the Ministry, a fine ranging from five hundred to one thousand wages shall be imposed;
III.- If acts in violation to what is set forth in this Law or its regulatory provisions on the matter of neutral investment are performed, a fine ranging from one hundred to three hundred wages shall be imposed;
IV.- In cases of omission to perform, untimely performance, incomplete or incorrect information with respect to the obligations of registration, report or notice to the Registry on the part of the obligated individuals, a fine ranging from thirty to one hundred wages shall be imposed;
V.- If there is simulation of acts in order to allow the enjoyment or disposal of real estate in the restricted zone by foreign individuals or entities or to Mexican corporations which do not have foreigners’ exclusion clause, in violation to what is set forth by the Second and Third Titles hereof, the violator shall be sanctioned with a fine of up to the amount of the operation; and
VI.- Any other violations to this Law or to its regulatory provisions shall bear a fine ranging from one hundred to one thousand wages.

For the purposes of this Article, ‘wage’ shall be understood is the daily general minimum wage, in force in the Federal District at the time the violation is determined.

For the determination and imposition of any penalty, the interested party shall be heard and, in case of pecuniary penalties, the nature and seriousness of the violation, the earning power of the violator, the time elapsed from the date the obligations should have been performed and its compliance or regularization, and the total value of the operation shall be taken into consideration.

The Ministry shall have the power to impose penalties, except for the violation referred to in Section V of this Article and the other related to the Second and Third Titles hereof, which shall be applied by the Ministry of Foreign Affairs.

The imposition of penalties referred to in this Title shall be without prejudice to the appropriate civil or criminal liabilities.

ARTICLE 39.- Public officers vested with notarial functions shall list, insert or add to the official file or appendix, the instruments in which they take part, the legal communications which certify the authorizations which should be issued as set forth herein. When public officers authorize instruments in which such authorizations are not listed, they shall be imposed the penalties determined by the corresponding notarial laws and the Public Brokerage Federal law.