Bogotá — Colombia’s company regulatory body has alleged that Canadian oil exploration and production company Frontera Energy Corporation violated regulations regarding the disclosure of parent and subsidiary companies by failing to disclose its links to some 30 compaies.
The Superintendency of Companies stated Friday that some foreign companies with a presence in Colombia are controlled by Frontera Energy Corporation (Canada), and therefore their link to the conglomerate should have been disclosed in the commercial register.
“The disclosure of control or business situations is in the public interest, as there is a risk for people who interact with the companies, when the identity of the true parencompany t or controlling companies and all the related entities is not known,” the head of the superintendency, Billy Escobar Pérez, said.
“Although company law allows one or more persons to incorporate and control companies, it also imposes the obligation to request the registration of such links in the commercial register, in a complete and precise manner,” he added.
The company under investigation will be able to exercise its right of defense within the time limit established by law, according to the supervisory body.
Frontera Energy Corporation failed to disclose six foreign subsidiaries with branches in Colombia in the declaration of its commercial activities, it added.
These include the company Frontera Energy Colombia Corp. (Switzerland), which has an office in Colombia, and others domiciled in Panama and the British Virgin Islands.
“The administrative investigation was initiated at the request of investors of Frontera Energy Corporation (Canada), who are pursuing before a court in Colombia an action for reparations for damages caused to a group,” the superintendency said.
The disclosure of control structures and business groups “can be fundamental for the corresponding authorities when analyzing potential conflicts of interest of corporate administrators, the reality of operations between related parties, the consolidation of financial statements, risk assessment, and effects in cases of insolvency”, according to the authority.