Rules applicable to state-owned enterprises
State-owned companies must keep certain updated information permanently available to the public through their websites, including the applicable regulatory framework; the functions and competencies of each of their internal units or bodies; their financial statements and annual reports; consolidated information on personnel and the remuneration of directors, managers responsible for the direction and senior management of the companies, and the total remuneration received by the company's personnel in a comprehensive and consolidated manner.
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Article 10, paragraph 2, Law N° 20,285, access to public information.
State-owned companies that are not constituted as public limited companies will be subject to an additional 40% tax on the income tax applicable to individuals.
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Article 2, L.D. N° 2,398, Supplementary rules on financial administration and budgetary impact.
State-owned companies must adhere to an annual cash budget, which must be approved no later than December 1 of the year prior to the year in which it enters into force by a joint decree of the Ministries of Finance and Economy, Development and Tourism, and which must also bear the signature of the ministry through which they have relations with the government. This budget includes an operating budget, an investment budget, and a budget for the contracting, disbursement, and amortization of loans.
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Article 11, Law N° 18,196, complementary regulations on financial administration, personnel and budgetary impact.
Severance payments for termination of the employment relationship of its executives, not hired through public tender, may not exceed those established in the Labor Code (1 month's remuneration for each year of service and fraction of more than 6 months with a maximum of 11 compensable years). A higher indemnity may only be agreed in the case of having been hired through a public tender process in which the amount has been established.
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Presidential Instruction N° 12 of 2000.
The regulations under which state-owned companies may contract loans are subject to law, however, under no circumstances may they be contracted with the State, its agencies or companies.
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Article 63 N° 9, Fundamental Charter.
State-owned companies (...) are subject to oversight by the Contraloría General de la República, to ensure the compliance with the purposes of these companies, the regularity of their operations, enforcing the responsibilities of their directors or employees, and obtaining the information or background necessary to formulate a national balance sheet.
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Article 16, paragraph 2 Law N° 10,336, organization and powers of the Contraloría General de la República.
Their directors and managers must make a declaration of interests and assets within 30 days following the entry and exit from the position and update it annually in the month of March each year.
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Article 4 N° 7, Law N° 20,880, integrity of the public service and prevention of conflicts of interest.
All indebtedness that may compromise public credit must be previously authorized by the Ministry of Finance (except Banco Estado).
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Article 44, L.D. N° 1,263 of 1975, financial administration of the State.
State-owned companies are required to provide the Comisión para el Mercado Financiero or, where applicable, the Superintendency to whose oversight they are subject, with the same information that publicly traded corporations are required to provide. General Standard N° 30 specifies, orders and standardizes the information that companies must submit to the Financial Market Commission and to the general public.
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Article 10, paragraph 4, Law N° 20,285, access to public information and General Standard N° 30 of the Financial Market Commission.
They must adhere to certain instructions from the Ministry of Finance regarding personnel policies and collective bargaining.
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Instructions from the Dipres.
Their investment projects over a certain amount established by joint decree of the Ministries of Finance and Economy, Development, and Tourism, must be identified in advance by the same ministries to be carried out. These investment projects must have the approval of the Ministry of Social Development and Family, through the evaluation of an economic technical report that accounts for the profitability of the project.
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Article 24, Law N° 18,482, complementary regulations on financial administration and budgetary impact.
They have restrictions regarding the maximum amount of remuneration allowed for their company executives: these cannot exceed the monthly remuneration of the president of the Central Bank of Chile. The exception to the rule is established in a instruction from the Ministry of Finance and requires a reasoned and unanimous agreement from the board of directors.
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Presidential Instruction N° 6 of 2006, supplemented by instructions from the Ministry of Finance.
They can only make capital contributions or place funds in the capital market with prior authorization from the Ministry of Finance.
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Article 3, paragraph 2 L.D. N° 1,056 of 1975, which determines complementary rules relating to the reduction of public spending and the better organization and control of personnel.
Its directors and senior executives are politically exposed persons (PEPs) for up to one year after they have ceased to hold such positions. Their spouses and relatives (up to the second degree of consanguinity) are also considered PEPs. Therefore, banks, property brokers, currency exchange houses, among others, are required to report all transactions conducted with PEPs and raise the standards of requirements and authorizations for transactions involving PEPs.
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Law N° 19,913. Unidad de Análisis Financiero (UAF). Instruction N° 49 of 2012 of the UAF.
Directors who have been appointed or elected directly or indirectly by the state or any of its agencies do not have the right to receive remuneration from profit sharing, and in case they do receive it, they must transfer it freely to the Treasury of Chile.
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Article 30 L.D. N° 3,477 of 1980, which establishes budgetary, financial administration and personnel rules.
They must provide the specific reports and background information requested by the committees of the chambers of Congress or by duly identified parliamentarians in plenary or committee sessions.
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Article 9 A, Law N°18,918, Constitutional Organic Law of the National Congress.
Special investigative commissions of Congress may summon the personnel of state-owned companies to their sessions, and they will be obliged to appear and provide the background and information deemed indispensable for the fulfillment of their duties.
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Article 314, Regulations of the Chamber of Deputies.
In order to obtain a state guarantee for the loans they take out or the bonds they issue, state-owned companies must first sign a programming agreement with the el Comité Sistema de Empresas - SEP of the Corporación de Fomento de la Producción (Corfo), which will specify the objectives and expected results of their operation and investment program, in the manner established by instructions from the Ministry of Finance.
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Article 2, Law N° 19,847, It empowers the President of the Republic to grant a state guarantee for the obligations indicated.