Cassation Ruling

On October 7, 2025, the Civil Chamber of the Supreme Court of Justice dismissed the cassation appeal filed by Avícola Las Margaritas, S.A. against the appellate judgment that had rejected its claim seeking a declaration of extinctive prescription of the obligation to pay dividends agreed by the shareholders’ meeting on June 10, 2014, in favor of Lisa, S.A. The underlying summary commercial action argued that more than five years had elapsed without enforcement, allegedly extinguishing the dividend obligation.

The Supreme Court upheld the reasoning of the Court of Appeals, which found that the dividend obligation was not immediately enforceable because the shareholders’ assembly expressly delegated to the board of directors the authority to determine the form and date of payment. As no evidence showed that such date had ever been set, the courts held that the prescriptive period never began to run. The Supreme Court further ruled that the appellate court properly applied Articles 132 and 669 of the Commercial Code and that there was no incorrect application or omission of Article 675. As a result, the cassation appeal was dismissed, costs were imposed on the appellant, and a statutory fine was ordered.