Title III
Title III
Compulsory Sanctions and Penalties
Article 26.- In cases in which the full exercise of the powers granted to the SVS by article 4, letters d) and g) of this statutory law is obstructed or impeded, the SVS may request the ordinary courts to apply the compulsory proceedings stipulated in articles 93 and 94 of the Tax Code in order obtain the full compliance and execution of said powers.
These proceedings will also be applied to those persons that, having been called upon to declare by the SVS in accordance with article 4, letter h), do not appear without a justified reason.
The persons that make false testimonies before the SVS will be penalized in accordance with article 210 of the Penal Code.
The competent court to hear these proceedings, as requested by the SVS, may be the corresponding civil court in Santiago or that of the offender's residence.
In the event of opposition to the exercising of the powers indicated in article 4, letters d) and f) of this statutory law, the SVS may directly ask the corresponding Regional Governor for assistance from the police with search and entry powers.
Article 27.- The corporations subject to enforcement by the SVS that commit infractions of the laws, regulations, statutes or other rules that govern them, or do not comply with the instructions and orders given to them by the SVS, may be subjected by the SVS to one or more of the following sanctions (without prejudice to penalties specifically established in other legal or regulatory bodies):
1) Censure;
2) Fines to be paid to the treasury up to overall sums per corporation equivalent to 1,000 U.F. In the event of repeated infractions of the same nature, a fine of up to five times the above amount may be applied; and
3) Cancellation of the corporation's operating authorization, when appropriate.
The fine amount indicated in number 2) will be determined based on the severity and consequences of the event, the financial capacity of the offender and if he has committed other infractions of any nature in the last 24 months. This circumstance will not be taken into consideration in those cases in which the repetition alone has determined an increase in the amount of the basic fine.
The sanctions indicated in numbers 1) and 2) may be applied to the corporation, directors, managers, employees or account inspectors or liquidators as is deemed appropriate by the SVS.
When the sanctions included in numbers 1) and 2) of this article are applied, the SVS may inform stockholders meetings of the infractions, acts of non-compliance or acts which directors, managers, account inspectors or liquidators have committed so that they may remove said persons from their positions if it is deemed appropriate, without prejudice to carrying out the legal actions the SVS deems pertinent. The board of directors must make the convocation of stockholders meetings within a period of time set by the SVS, with the SVS being able to make said convocation if it is deems it necessary.
Article 28.- Persons or entities other than those referred to in the first point of the previous article but subject to the SVS' enforcement or supervision that transgress the laws, regulations, statutes or other rules that govern them or do not comply with the instructions and orders given to them by the SVS may be subjected by the SVS to one or more of the following sanctions (without detriment to sanctions specifically established in other legal or regulatory bodies):
1) Censure;
2) Fines to be paid to the treasury up to overall sums per entity or person equivalent to 1,000 U.F. In the event of repeated infractions of the same nature, a fine of up to five times the above amount may be applied; and
3) In the event the persons in question have been named or authorized by the SVS to carry out certain tasks or actions, the SVS may also apply the following sanctions:
a) The suspension of their post for up to one year, and
b) In serious cases, the cancellation of their authorization or assignment.
The fine amount indicated in number 2) will be determined based on the severity and consequences of the event, the financial capacity of the offender and if he has committed other infractions of any nature in the last 24 months. This circumstance will not be taken into consideration in those cases in which the repetition alone has determined an increase in the amount of the basic fine.
The sanctions established in this article may be applied to corporations, companies, entities, individual and corporate entities, administrators and representatives as the SVS deems fit.
Article 29.- Without detriment to the stipulations of articles 27 and 28, when applying fines the SVS, at its discretion, may set fines in accordance with the limits established in said articles or up to 30% of the value of the issue or irregular operation.
For the effects of the above-mentioned articles, repetition will be understood to mean two or more infractions committed within a period of 12 months.
Article 30.- The value of fines applicable in accordance with the law will be set by the Chairman and must be paid to the district treasury that corresponds to the offender’s residence within a period of 10 days from the time the Chairman announces the decision via certified mail, and the respective proof of payment must be delivered to the SVS offices within five days of payment.
The affected party may appeal the application or amount of a fine before the corresponding Civil Judge within the ten-day period indicated in the previous point, after paying a consignment fee equal to 25% of the total fine amount to the State Treasurer’s Office. This consignment fee shall not be greater than 500 U.F. or 1,000 U.F. if the fine is applied to an individual or company, respectively, except in the case of repeated infractions or those of Title XXI of Law No 18,045, in which case the consignment fee should be set at 25%.
If the appeal is filed within the period of allowance, the period allowed for payment of the fine will be suspended, notwithstanding the interests indicated in article 34, which will begin to accrue on the eleventh day after notification of the SVS’ resolution to apply the fine. Nevertheless, notification of a claim must be made in writing in conformity with article 44 of the Code of Civil Proceedings, within ten working days after the period of allowance for the filing of an appeal.
The time limit established for the payment of fines will be suspended when appeals are opportunely filed, without detriment to the adjustments and interests referred to in article 34 of this statutory law, which will begin to accrue on the eleventh day after the notification of the fine.
The appeal will be resolved in summary proceedings and the decision may be appealed.
First and second decisions that reject appeals will make the claimants liable for legal fees.
The payment of fines along with the adjustments and interests referred to in article 34 must be made within five days of the court’s decision.
Article 31.- If a fine is not paid and the time limit for appeal has expired or an appeal has been rejected, the SVS may file summary proceedings against offenders before the corresponding civil court in Santiago, including a copy of the resolution applying the fine or the legal decision, as the case may be, which alone will be legally binding. The above is without detriment to the stipulations of article 233 of the Civil Procedures Code.
In these proceedings the defendant may only submit the exceptions of prescription, that the title does not apply to him/her and that of payment was done. In the case of payment done, defendants will always be liable for legal fees unless they can prove having delivered on time the proof of payment to the SVS.
Article 32.- The responsibility for fines applied to companies or their directors or liquidators will be shared by the directors or liquidators that voted in favor of the decisions that resulted in the fine.
Article 33.- The SVS may not apply fines to offenders after four years have passed since the last date upon which the infraction was committed or the oversight occurred.
The action of collecting fines prescribes in a period of two years from the time it was issued, in accordance with the stipulations of articles 30 and 31 of this statutory law.
Article 34.- Delays in the payment of fines applied by the SVS, in accordance with the law, will be subject to the interests and adjustments established in article 53 of the Tax Code.
If a fine is not appropriate and is nonetheless paid, the SVS or corresponding court, according to the case, must order a properly adjusted refund as indicated in articles 57 and 58 of the Tax Code.
Article 35.- The rules established in the preceding articles will be applied in all cases in which the SVS sanctions supervised persons or entities with fines.
Article 36.- The periods of days established in this statutory law are understood to be made up of working days.
The notifications made by the SVS will be communicated via certified mail and the relating time limits will begin three days after the notification is received by Correos y Telégrafos (Chilean Post Office).
The appeals heard by the respective courts in accordance with this statutory law would receive preferential placement on the agenda.
Article 37.-The stipulations of this statutory law take precedence over the stipulations established in the statutes of the persons or entities subject to the SVS' supervision.
