Notes and considerations on the conversion of the share capital of a Peruvian company from soles to foreign currency

Authors

  • Miguel Ángel Pérez Caruajulca Pontificia Universidad Católica del Perú

    Abogado por la Pontificia Universidad Católica del Perú (PUCP), con estudios de intercambio y especialización en The University of New Mexico en Estados Unidos y en la Università degli Studi di Brescia en Italia, respectivamente. Cuenta con estudios de maestría en la Maestría de Investigación Jurídica de la Escuela de Posgrado de la PUCP. Se ha desempeñado como profesor adjunto en cursos de Derecho Civil, Societario y Corporativo en la Facultad de Derecho de la PUCP. En el ámbito profesional, cuenta con experiencia en asesoría legal corporativa en temas de Derecho Corporativo, Derecho Civil, Proyectos de Infraestructura y Arbitrajes. Ponente y capacitador en diversos cursos, seminarios y diplomados en las materias antes indicadas.

DOI:

https://doi.org/10.18800/dys.202402.005

Keywords:

Share Capital Conversion, Peruvian companies, Foreign Currency, Peruvian Corporate Law, Foreign Investment, Exchange Rate Risk, Foreign Currency Accounting, Mitigation Strategies, Financial Statements

Abstract

The article examines the conversion of the share capital of a peruvian company from soles to foreign currency, highlighting its legal, economic, and financial implications. It analyzes the function of share capital, the general rule of its expression in national currency, and the exceptions that allow its expression in foreign currency. Also, the requirements for this conversion are detailed, including the need for administrative authorization and its connection to accounting in foreign currency. Additionally, the reasons for this conversion are discussed, such as the protection of foreign investment, mitigation of exchange rate risk, and attraction of international financing. The article concludes with an analysis of the financial implications and strategies for managing exchange rate risk that can be applied to companies that decide to convert their capital stock to foreign currency.

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Published

2024-11-19

How to Cite

Pérez Caruajulca, M. Ángel. (2024). Notes and considerations on the conversion of the share capital of a Peruvian company from soles to foreign currency. Derecho & Sociedad, (63), 91–99. https://doi.org/10.18800/dys.202402.005

Issue

No. 63 (2024): Derecho de la Empresa

Section

Artículos

License

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.