How are conflicts of interest of board members regulated in State-Owned Enterprises?
There are several rules that regulate conflicts of interest that may affect the directors of State-Owned Enterprises.
In the case of State-Owned Enterprises created by law, these conflicts are governed by the rules of probity of Title III of Law N° 18,575, by the provisions established in their own organic rules and, in some cases, in a supplementary manner, also by the rules applicable to corporations.
In the case of state entities, the rules established in Law No. 18.046 for closed or open corporations, as applicable, apply to them.
In addition, all of them are subject to the prohibitions to contract established in Article 4, paragraphs 6, 8 and 9 of Law No. 19.886, on administrative contracts for the supply and rendering of services.