What to expect in 2022: Key legal issues for companies

• Corporate. The reform initiative presented at the end of 2021 to amend the General Law of Commercial Companies expressly provides for remote attendance to all kinds of meetings. Companies are increasingly adhering to the provisions of the Environmental, Social and Governance Principles in their corporate governance provisions.
• Economic Competition. The growing involvement of startups in mergers and acquisitions poses the challenge of analyzing the substantial power of economic agents in digital markets. At the organizational level, key officials are to be appointed to the Plenary of the Federal Economic Competition Commission.
• Financing. Sustainability criteria and the replacement of the LIBOR rate will most likely play a key role in financing.
• Energy. The approval in 2021 of the initiative to amend articles 25, 27 and 28 of the Political Constitution of the United Mexican States will significantly affect the electricity and hydrocarbons industry.
• Infrastructure. The Secretariat of Infrastructure, Communications and Transportation will have a total budget of 65,553,600 million pesos, which will mainly go to road, air and railroad projects.
• Taxation. Amendments to the Income Tax Law, the Value Added Tax Law, the Excise Tax Law, the New Automobiles Federal Law, the Federal Tax Code and other regulations may have a potential impact on the taxation of multinational groups in Mexico and abroad.
• Labor. The collective bargaining and labor justice reform of May 1, 2019, and the subcontracting reform of April 23, 2021, will continue to have effect on labor matters throughout 2022.

Litigation/Arbitration. In 2022, a considerable increase in constitutional disputes is expected from the implementation of various federal industrial and commercial policies. At the same time, breaches occurring in 2021 will likely lead to an increase in bankruptcy proceedings and commercial disputes in major productive sectors. This will involve commercial disputes and arbitration, as well as an increase in investor-State arbitration.