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EPM is owned by the Municipality of Medellin through the Mayor, who in turn acts as Chairman of the Board of Directors and appoints the CEO and other Board members; 5 are appointed freely and 3 are chosen from the control spokespersons registered in the Social Control of Public Utilities Committees.
Nonetheless, any decision changing the Company’s bylaws, dividends policy or agreements ruling the operation of the entity, shall be discussed and approved by the Council of Medellin, an administrative corporation chosen by the people.
EPM is an autonomous enterprise which has operated independently from the Municipality since its foundation in 1955. The Municipality’s participation in the Company is submitted to the rules established in article 27 of Law 142 of 1994 since it acts as the sole owner of this state-owned industrial and commercial enterprise.
EPM and the Municipality of Medellin have traditionally encouraged to separate the roles shared by both entities, which are primarily summarized as follows:
This Independence represents an increasingly efficient management and more transparency in the actions conducted by each entity. Hence, there are different formal communication channels with the Municipality for each of the different roles performed, as follows:
Pursuant to Agreement No. 69 of 1997, by which a state-owned industrial and commercial enterprise is transformed, EPM shall deliver to the Municipality dividends (“transfers”) equivalent to 30% of its adjusted net income. Nonetheless, exceptional cases requested by the Mayor of Medellin may lead to decree dividends above this amount, which shall be approved by the Municipality Council. The Municipality Council of Economic & Social Policy –COMPES- determines the surplus to be transferred every year.
Relations Framework Agreement