ESG Global Vision

Law

Entry into force: 25 September 2020

National or foreign commercial companies (domiciled in the country) that voluntary decide to adopt the regulation

This administrative resolution establishes standards within the framework of good corporate governance aimed at ensuring equitable treatment for shareholders of the same class, transparency and ethics with respect to the relevant issues of the company (financial situation, performance and administration, ensuring the effectiveness of mechanisms of internal and external control. These rules are mandatory only for those companies that voluntarily decide to adopt them.

Law

Entry into force: 20 October, 2008

Individuals and legal entities

• It contemplates specific obligations for private individuals and legal entities in relation to respect for human rights and the environment and obliges them to put the general interest before the individual interest.
• Each person involved in the processes of production, distribution, marketing and use of goods or services assumes direct responsibility for preventing any environmental impact, mitigate and repair any damage, and to maintain a permanent environmental control system.
• The regulations provide for a strict liability regime for environmental damage that is not subject to statute of limitations.

Law

Entry into force 10 August 2014

Individuals and legal entities

• Penalties are established for individuals and legal entities for committing crimes against the environment (e.g., related to the invasion of protected areas, forest fires, environmental pollution).
• In cases of crimes against the environment and nature, legal entities could be found liable and subject to different sanctions including business dissolution (final closure) and fines. Also, those declared responsible are obliged to implement necessary measures to repair the environment comprehensively.

Law

Entry into force: 12 April 2017

Individuals and legal entities

The law refers mainly to the right to live in a healthy environment and the rights of nature. To this end:

• it includes several environmental principles (e.g. sustainable development, cooperation, participation, non-regression, in dubio pro natura, prevention, and polluter pays),
• it develops a strict liability regime for environmental damage. Liability for environmental damage is imposed on the agent, regardless of the degree of intent with which he may have acted. The burden of proof regarding the non-existence of environmental damage falls on the operator of the activity.
• it creates the instruments for maintaining a permanent environmental control system. The law adjusts the strictness of the licensing and control regimen depending on the impact that the activity may have on the environment; and,
• in general, regulates the State's activities and powers to prevent and control environmental impacts and damages. 

Numerous administrative offenses and sanctions are contemplated.

Law

Entry into force: 10 August 2014

Modified on 17 February 2021 (Official Registry No. 392)

Individuals who hold senior administrative positions in private companies, private companies and, in some cases, third parties (external to the company).

Penalties are established for private companies that commit acts of corruption in the private sector in order to benefit themselves or third parties in the context of their commercial activities. In addition, the company's senior administrative persons  and any person external to the company (who offers or grants any type of undue gift) could also be liable for this type of crime.

Law

Entry into force: 10 July 2020

Individuals and legal entities that are suppliers of goods and services

• This law regulates the relations between consumers and suppliers. Ecuador's products' liability law does not allow to limit the supplier's liability.
• Patents, authorizations, licenses or other documents or permits granted by the Government to certain suppliers for the purpose of research, development or commercialization of goods or the provision of services that may be dangerous or harmful to the health of the consumer, shall not represent in any case an exemption from liability for damages actually caused to said consumers, damages that under the provisions of this or other statutes, will be borne by the suppliers and all those who have participated in the production chain, distribution and marketing of the aforementioned goods.
• Producers, manufacturers, importers, distributors, merchants and every entity who branded the product or the service, shall be jointly and severally liable for civil damages resulted for defective goods or defective services provided. Are also liable those who participated or influence in such damages.
• Numerous offenses and sanctions are contemplated for the violation of consumers rights.

Law

Entry into force: 26 May 2021

Individuals and legal entities that handle personal data

This law regulates, foresees and develops principles, rights, obligations and protection mechanisms with the purpose of guaranteeing the right to the protection of personal data, which includes access to and decision on information and personal information. Establishes regulatory control procedures and sanctions that will come into force in May 2023.

Law

Entry into force: 5 November 1999

Last modified: 10 December 2020

All commercial entities

• This statute regulates the main corporate obligations of commercial companies in Ecuador.
• In February 2020, the category of "Company of collective benefit or interest" was included for those companies that want to generate a positive material impact in the areas of governance, working capital, community, customers and the environment.
• The law allows companies in exceptional circumstances to carry out activities outside their corporate purpose, in the case of research activities and those considered as reasonable contributions of a civic or social nature.

Law

Entry into force: 16 December 16 2005

Last modified: 4 November 2021

Individuals and legal entities with Ecuadorian employees

This law regulates, in general, all aspects of the relationship between employer and employee. Based on different criteria, it creates several burdens for employers, such as: the implementation of internal regulations related to occupational hygiene and safety, the creation of daycare centers for the children of workers, the hiring of social workers and occupational physicians.

Law

Entry into force: 2 June 2012

Individuals and legal entities with public funding or access to public resources

• Under this statute the Office of the National Comptroller exercises its powers through control and audit procedures (financial, management, public works, environmental, among others). The control entity can determine civil responsibilities of individuals and private entities, who are obligated to collaborate with the procedures and to hand all information and documentation that is required.  For example, in the context of an environmental audit, the civil liability of a public servant and a legal entity could be determined jointly.
• Also, the control authority (CGE) could issue reports with indications of criminal liability against legal entities for acts of corruption, with the purpose that such acts be investigated by the attorney general's office.