Closing the Gap: How to Avoid Costly Litigation in High-Stake Credit.

Closing the Gap: How to Avoid Costly Litigation in High-Stake Credit.

by | Mar 10, 2026 | collateral, Commercial law, Contracts, Corporate, Corporativo, Derecho Mercantil, guarantees, Investment, Jurisprudence, Mexican Law, non-possessory pledges, SCJN, Tribunal Federal

Some companies granting high-value credit rely on the fact that, by being secured through non-possessory pledges or guaranty trusts, they will face fewer difficulties in recovering their investment in the event of a debtor’s default. On the other hand, if the...
Subscribing for stock shares is not the same as paying for them: a consequence many companies in Mexico discover too late

Subscribing for stock shares is not the same as paying for them: a consequence many companies in Mexico discover too late

by | Mar 9, 2026 | Corporate Governance & Complience, Corporate Law, Corporativo, Jurisprudence, LGSM, SCJN, Stock Shares

A company admitted a new shareholder through a capital stock increase, received a promissory note as a guarantee for payment of the issued stock shares, and believed that with that it was in compliance. The Supreme Court of Mexico (the Court) confirmed that it was...
The false certainty of choosing a foreign governing law in contracts with effects in Mexico.

The false certainty of choosing a foreign governing law in contracts with effects in Mexico.

by | Jan 27, 2026 | Business company, Commercial law, Company law, contract termination, Contracts, Corporate, Corporate Law, Corporativo, Derecho Mercantil

When a company operates commercially in Mexico, the question often arises as to whether it is less risky to choose a governing law other than Mexican law for the interpretation of its contracts. This decision is usually based on an assumption that is not always...