The Seventeenth Civil Court of Santiago accepted, with costs, the request of the State Defense Council (CDE) and canceled the legal personality and declared the company dissolved. Fundación Democracia Viva, the organization that uncovered the so-called Covenants case.
In a unanimous ruling, Judge María Isabel Reyes Kokisch established that in this case, the requirements to access the CDE request are met, as the foundation incurred serious violations of the statutes of non-profit institutions.
“That, by virtue of the evidence provided by the plaintiff to which reference has been made in the third reason, the following facts can be considered proven. a) That legal personality was granted to the foundation called ‘Live Democracy Foundation’, through registration No. 326026 of February 25, 2022, in the National Registry of Non-Profit Legal Entities in charge of the Civil Registry and Identification Service , with the President of the Board of Directors being Mr. Daniel Francisco Andrade Schwarze, with its main headquarters located at 1900 Exequiel Fernández Street, Department 31 E, Ñuñoa commune. b) That, the Foundation was requested on repeated occasions by the Ministry of Justice to present a series of background information that were not fully responded to as pertinent, remaining inactive in compliance with its legal obligations. c) That, as a result of not complying with said requirements, an inspection procedure was carried out by the Department of Legal Entities of the Ministry of Justice and Human Rights, in File File No. 17,729-23,” the ruling details.
“That, in accordance with what was expressed in the preceding recital and the provisions of the regulations transcribed above, also taking into account the raid of the defendant, and especially bearing in mind that the Ministry of Justice, in the exercise of the powers conferred on it by the Article 557 of the Civil Code, required the defendant through Orders No. 2,383 of June 32, 2023, No. 2,493 of July 4, 2023, forwarded on the 17th of the same month, No. 2,721 of July 18, 2023 and No. 3,075 of August 3, 2023, all without response, except for the first, to which a response was given on June 30, 2023, supplemented on July 11, 2023, finally sent by the legal representative of the foundation , an email dated August 23, 2023 to the Ministry’s parties office, indicating that it does not have access to the required information or it would have already been attached to the file, so it is pertinent to conclude that the defendant Foundation has incurred “a serious violation of the statutes, a failure that, as established in the final paragraph of article 557 of the Civil Code, enables the State Defense Council to request the cancellation and dissolution of the legal personality,” the resolution adds.
“In conclusion, the budget established by article 559 letter c) No. 1 of the Civil Code being configured in the species, the claim must be accepted in the manner as will be stated in the resolution of this ruling,” he concludes.
Therefore, it is resolved “that the complaint on page 1, filed by the State Defense Council against the Living Democracy Foundation, is granted, and consequently, it is declared dissolved, canceling its legal personality, with costs.”
Read the ruling at this link.