Normas de prorrateo de la amortización

English translation: rules for pro rata distribution of the [stock] redemption/buyback

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Spanish term or phrase:Normas de prorrateo de la amortización
English translation:rules for pro rata distribution of the [stock] redemption/buyback
Entered by: Robert Carter

15:05 Aug 18, 2020
Spanish to English translations [PRO]
Bus/Financial - Business/Commerce (general)
Spanish term or phrase: Normas de prorrateo de la amortización
Hi guys,

This is from the articles of association of a Mexican company and appears as follows:

"En caso de disminución se aplicará ésta proporcionalmente sobre el valor de todas las acciones y la Asamblea fijará las normas de prorrateo de la amortización y la fecha en que las amortizaciones deban surtir efecto."

Thanks!
Nick
Nicholas Isard
Spain
Local time: 13:53
rules for pro rata distribution of the [stock] redemption/buyback
Explanation:
This has nothing to do with the English cognate "amortization" in either of its senses (i.e., neither asset depreciation nor loan repayment). No, what this is referring to is an "amortización de acciones" in a reduction of capital stock, what we call a redemption of shares or stock buyback in English. I've seen this hundreds of times in corporate bylaws and minutes of shareholder meetings from Mexico, so I'm positive that's the meaning. My only hesitation is exactly how to word this. Here, I'm adding the word "distribution" because I believe that is what the "prorrateo" part is referring to. I understand it to mean the basis of proportionality of how the buyback is to distribute the capital to the shareholders.

"amortización de acciones - repurchase of shares of stock by a corporation, redemption of stock, stock buyback, share buyback"
Javier F. Becerra, Dictionary of Mexican Legal Terminology, 2nd ed., p 84.

"26 U.S. Code § 302. Distributions in redemption of stock
...
(4)Redemption may be pro rata
Whether or not a redemption meets the requirements of subparagraphs (A) and (B) of paragraph (2) shall be determined without regard to whether or not the redemption is pro rata with respect to all of the shareholders of the corporation."

https://www.law.cornell.edu/uscode/text/26/302




Selected response from:

Robert Carter
Mexico
Local time: 06:53
Grading comment
4 KudoZ points were awarded for this answer



Summary of answers provided
5 +1amortization apportionment rules
Patricia Fierro, M. Sc.
4rules for pro rata distribution of the [stock] redemption/buyback
Robert Carter


  

Answers


15 mins   confidence: Answerer confidence 5/5 peer agreement (net): +1
amortization apportionment rules


Explanation:
Apportionment describes the allocation of a loss between all of the insurance companies that insure a piece of property. Apportionment can refer to real estate or the distribution of economic benefit. Apportionments most often applies when two or more insurance policies are taken out with the same insured party.Mar 29, 2020

Apportionment Definition - Investopedia

Patricia Fierro, M. Sc.
Ecuador
Local time: 07:53
Meets criteria
Specializes in field
Native speaker of: Native in SpanishSpanish, Native in EnglishEnglish
PRO pts in category: 66

Peer comments on this answer (and responses from the answerer)
agree  Antonella Perazzoni
1 hr
  -> Grazie, Antonella

agree  AllegroTrans
1 day 6 hrs

disagree  Robert Carter: No, it definitely has nothing to do with "amortization", Patricia. ¡Saludos!
1 day 12 hrs
Login to enter a peer comment (or grade)

1 day 13 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
rules for pro rata distribution of the [stock] redemption/buyback


Explanation:
This has nothing to do with the English cognate "amortization" in either of its senses (i.e., neither asset depreciation nor loan repayment). No, what this is referring to is an "amortización de acciones" in a reduction of capital stock, what we call a redemption of shares or stock buyback in English. I've seen this hundreds of times in corporate bylaws and minutes of shareholder meetings from Mexico, so I'm positive that's the meaning. My only hesitation is exactly how to word this. Here, I'm adding the word "distribution" because I believe that is what the "prorrateo" part is referring to. I understand it to mean the basis of proportionality of how the buyback is to distribute the capital to the shareholders.

"amortización de acciones - repurchase of shares of stock by a corporation, redemption of stock, stock buyback, share buyback"
Javier F. Becerra, Dictionary of Mexican Legal Terminology, 2nd ed., p 84.

"26 U.S. Code § 302. Distributions in redemption of stock
...
(4)Redemption may be pro rata
Whether or not a redemption meets the requirements of subparagraphs (A) and (B) of paragraph (2) shall be determined without regard to whether or not the redemption is pro rata with respect to all of the shareholders of the corporation."

https://www.law.cornell.edu/uscode/text/26/302






Robert Carter
Mexico
Local time: 06:53
Meets criteria
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 212
Login to enter a peer comment (or grade)



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