1E9Ct5D

4.6. The Oversight BoardIf the articles of association so establish, the company can have an oversight boardformed by one or more partners or persons outside of the company. The function of theoversight board will be to ensure the adequate administration of the company in orderto report to the partners meeting any relevant point regarding the management of thecompany and its accounting records.5. The Stock Corporation (Sociedad Anónima)58C H A P T E R I I IThe LGSM defines the stock corporation simply and clearly as a company existing undera corporate name and composed exclusively of shareholders whose liability is limited tothe payment of their shares. The name can be freely chosen and will always be followedby the words Sociedad Anónima or its abbreviation, S.A.5.1. Requirements for the Incorporation of a Stock CorporationThe following is required for the incorporation of a stock corporation:a) That there are at least two shareholders and that each of them subscribes at leastone share;b) That the capital stock is not less than $50,000.00 (50 thousand pesos 00/100,Mexican currency);c) That at least 20 percent of the value of each share payable in cash be paid; andd) That the value of each share to be paid in kind, in whole or in part, be paid in full.The articles of incorporation of the stock corporation should contain, in addition tothe requirements indicated in Point 2 of this chapter:a) The paid portion of the capital;b) The number, par value, and nature of the shares into which the capital stock isdivided, except when they are shares without par value;c) The form and the terms in which the unpaid portion of the shares must be paidwhen they are assessable shares;d) The share of the profits granted to the founders of the company;e) The appointment of one or more examiners; andf) The powers of the general meeting and those granted for the validity of their deliberations,as well as for the exercise of the rights to vote, to the extent the legal provisionscan be freely modified by the shareholders.