Double Trouble? (3)
by Torsten Daerr
Webb: And capital to set up this corporation? (sarcastic.)
Turner: Particularly, in the SA, (i) the minimum capital is of $50,000.00 of which 20% must be paid at incorporation; (ii) A statutory auditor, who supervises the operations of the company and represents the interests of the shareholders must be appointed. In the SRL, (i) the maximum number of partners can only be 50, and (ii) a minimum capital of $3,000.00 MexCy., of which 50% must be paid at incorporation; (iii) there is no requirement to appoint a statutory auditor, and (iv) it cannot be publicly traded at the stock exchange.
Webb: I'm sure there's more money involved! And what about permits? The Mexican government isn't going to let a company just "waltz in", pay a fee and start a business.
Turner: You're right of course; I've done a lot of research for Omega and I found out to incorporate a company it will be necessary to (i) obtain an Incorporation Permit from the Ministry of Foreign Relations, (ii) incorporate before a Notary Public/Commercial Broker and, if necessary, (iii) obtain a an approval from the Foreign Investments Authorities if the scope of the company is in a restricted area for foreigners. Generally foreign investors can participate, in any proportion, in the capital of a Mexican company except in the restricted areas.
Johnson: What restricted areas?
Turner: Just like in this country, you don't want a company in a residential neighborhood, so there are certain restrictions where business can be erected. Now, with your permission, I'd like to show you some of the businesses that have moved there. (They nod and he plays the movie for the next 30 minutes.) Webb Gentlemen! I like being educated about business as much as anybody, but there is no way I will vote to have Omega moved to Mexico!
Phillips: I don't know, Martin, maybe we need more information. If the labor is cheaper, then our profit is greater.
Webb: Are you serious? You would actually consider moving this company to Mexico? (He is incredulous.)
Phillips: I'm just saying we shouldn't close our minds to other options to save the company.
Webb: Save the company? You make it sound like we are going bankrupt!
Phillips: I just don't want it to go that far; we need to consider alternatives. It wouldn't be that difficult to relocate; International Relocation Services is a big business in Mexico. All the problems are handled by bilingual agents. I think it should be considered.
Johnson: I agree.
Webb: Steve? Let's hear your input.
Steve: I suggest we put the idea of relocation on the "back burner" temporarily. Relocation is a huge decision. Let's discuss the problems first; maybe there are some workable solutions.
Johnson: I'd like to discuss what we are going to do about Dr. Krueger?
Steve: What do you mean?
Johnson: He obviously won't be able to work for a while; once the news gets out, the stock value is going to fall.
Steve: How is anyone going to find out?
Johnson: One of the biggest problems is any company is the amount of gossip and rumors that are generated. There's just no way to prevent it.
Webb: I'm afraid he's right, Steve. Last year when my cousin came to visit me from Iowa, there was a huge rumor that I was getting married again! Once, the employees found out who she was, the speculation stopped. It was humorous at the time.
Steve: Let me take a jab at solving this problem right now. (He starts writing.)Let's have the secretaries post memos that "we are so happy for Dr. Krueger for being honored to present a scientific paper in Switzerland. While there, he is hoping to take a short vacation. We expect him to return at the end of the month."
Turner: Particularly, in the SA, (i) the minimum capital is of $50,000.00 of which 20% must be paid at incorporation; (ii) A statutory auditor, who supervises the operations of the company and represents the interests of the shareholders must be appointed. In the SRL, (i) the maximum number of partners can only be 50, and (ii) a minimum capital of $3,000.00 MexCy., of which 50% must be paid at incorporation; (iii) there is no requirement to appoint a statutory auditor, and (iv) it cannot be publicly traded at the stock exchange.
Webb: I'm sure there's more money involved! And what about permits? The Mexican government isn't going to let a company just "waltz in", pay a fee and start a business.
Turner: You're right of course; I've done a lot of research for Omega and I found out to incorporate a company it will be necessary to (i) obtain an Incorporation Permit from the Ministry of Foreign Relations, (ii) incorporate before a Notary Public/Commercial Broker and, if necessary, (iii) obtain a an approval from the Foreign Investments Authorities if the scope of the company is in a restricted area for foreigners. Generally foreign investors can participate, in any proportion, in the capital of a Mexican company except in the restricted areas.
Johnson: What restricted areas?
Turner: Just like in this country, you don't want a company in a residential neighborhood, so there are certain restrictions where business can be erected. Now, with your permission, I'd like to show you some of the businesses that have moved there. (They nod and he plays the movie for the next 30 minutes.) Webb Gentlemen! I like being educated about business as much as anybody, but there is no way I will vote to have Omega moved to Mexico!
Phillips: I don't know, Martin, maybe we need more information. If the labor is cheaper, then our profit is greater.
Webb: Are you serious? You would actually consider moving this company to Mexico? (He is incredulous.)
Phillips: I'm just saying we shouldn't close our minds to other options to save the company.
Webb: Save the company? You make it sound like we are going bankrupt!
Phillips: I just don't want it to go that far; we need to consider alternatives. It wouldn't be that difficult to relocate; International Relocation Services is a big business in Mexico. All the problems are handled by bilingual agents. I think it should be considered.
Johnson: I agree.
Webb: Steve? Let's hear your input.
Steve: I suggest we put the idea of relocation on the "back burner" temporarily. Relocation is a huge decision. Let's discuss the problems first; maybe there are some workable solutions.
Johnson: I'd like to discuss what we are going to do about Dr. Krueger?
Steve: What do you mean?
Johnson: He obviously won't be able to work for a while; once the news gets out, the stock value is going to fall.
Steve: How is anyone going to find out?
Johnson: One of the biggest problems is any company is the amount of gossip and rumors that are generated. There's just no way to prevent it.
Webb: I'm afraid he's right, Steve. Last year when my cousin came to visit me from Iowa, there was a huge rumor that I was getting married again! Once, the employees found out who she was, the speculation stopped. It was humorous at the time.
Steve: Let me take a jab at solving this problem right now. (He starts writing.)Let's have the secretaries post memos that "we are so happy for Dr. Krueger for being honored to present a scientific paper in Switzerland. While there, he is hoping to take a short vacation. We expect him to return at the end of the month."
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Torsten Daerr
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Webb: After I conclude this meeting, please get
Webb: After I conclude this meeting, please get
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