Trade and Commercial Law Assessment - Honduras - Economic ...

TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004
HONDURAS
COMPANY LAW
ATTACHMENT 1: COMPILATION OF RECOMMENDATIONS
No. Type Recommendation Priority Duration
1. Legal reform Update the Commercial Code.
High Long-term Assessment of parts of the Commercial Code
to be reformed.
Draft a modern law on companies that includes
corporate governance principles,
protection of minority shareholders, divestment, non- capital
requirements,
possibility of treasury or same- company-owned
shares and
the treatment of
exceptional cases when the legal personality of a company
can be disregarded
Establish private-public working groups about
these laws and workshops.
2. Institutional Modernize the Commercial Registry
High Long term
strengthening Monitor and complement The World Bank- Interamerican Development Bank
competitiveness project on Registry’s modernization
Monitor and complement the establishment
of the Property and collaborate on
automation of the registration processes and to acquire better
equipment and better
Registries’ facilities
3. Institutional Reduce regulatory steps to do business
High Medium
strengthening Monitor and complement the World Bank-Interamerican Development
Bank
competitiveness project.
term
4. Institutional Conduct an in-depth analysis of SME sector to identify how to
remove obstacles to Me dium Long term
strengthening increased growth and to promote more involvement in the formal
sector.
Design economic incentives to promote the
formalization and growth of SMEs.
Focus resources on SME sectors with the greatest potential
for
progress.
Design special programs for SMEs financing
Set up a donors’ conference on SMEs to design regional policies.
5. Assessment Undertake a tax assessment on Honduras
Medium Medium
Identify discrepancies on taxes. Eliminate the unfavorable tax treatment to
mergers, business asset and solidarity tax.
term
Determine cost-benefit of taxes
Draft changes in laws and institution to make the tax system
efficient.
Automate
the tax agency and introduce planning and management
techniques for tax
collection.
Attachment 1, pg. 1