Colombian Commercial Code - Decree 410 of 1971 - Book II - Of Corporations - Title X - the Participation Account - From: Section 507 By: Art 514

COLOMBIAN COMMERCIAL CODE

TITLE X

PARTICIPATION OF THE ACCOUNTS

Article 507 .- Participation is a contract by which two or more persons have the quality of traders take interest in one or more specific business operations, which must run one of them in his name alone and under his personal credit, under bearers and their members share with gains or losses in agreed proportion.

Article 508 .- Participation will not be subject in their training to the formalities required for the establishment of trading companies. The object, form, interest and other conditions are governed by the agreement of the participants.

Article 509 .- Participation does not constitute a legal person and therefore have no name, and address equity. Its formation, amendment, dissolution and liquidation may be established with the books, correspondence, witness or any other legal evidence.

Article 510 .- The manager will only reputable business owner in the external relations of participation.

Third parties will only have action against the administrator, the same way that participants will lack it inactive against others.

Article 511 .- The responsibility of the participant manager is not limited to the value of their contribution. However, inactive participants relieve or authorize to be known as the manager. This solidarity will emerge from the date on which it disappeared in the hidden nature of the participant.

Article 512 .- At any time the inactive participant is entitled to review all documents of participation and the manager is accountable for its management.

Article 513 .- Except for changes resulting from the legal nature of participation, it will produce among the participants the same rights and obligations of the limited partnership confers and imposes on the partners to each other.

Article 514 .- In matters not covered by the participation agreement to regulate the relations of the participants during both the association and the liquidation of the business or businesses, will apply the rules provided in this Code for the limited partnership and as they result insufficient, the general Title I of this book.