Order: Rejects dividends suit by Cerro Colorado, S.A.

On December 7, 2020, the Fifth Civil Court of First Instance in Guatemala ruled on Lisa, S.A.’s request to overturn a prior order that had admitted a claim by Cerro Colorado, S.A. for the alleged expiration of dividend payments. Cerro Colorado argued that more than five years had passed since a 2014 shareholders’ meeting approved dividends from 2013 profits, and therefore Lisa’s obligation was extinguished.

The court found that because both parties are commercial companies and the dispute concerns the payment of dividends, Guatemalan Commercial Code Article 1039 requires the matter to be resolved in a summary proceeding, not an ordinary one. It granted Lisa’s revocation, annulled the January 24, 2020 decree, and rejected Cerro Colorado’s ordinary claim. The ruling confirms that dividend-related disputes must be pursued through the summary process.