LAW N ° 19.170 AMENDS DECREE WITH FORCE OF LAW NO 94, 1960, LAW OF ADMINISTRATION OF THE COMPANY OF THE STATE ' S RAILWAYS AND DICTATES OTHER RULES RELATING TO THAT UNDERTAKING Having regard to the fact that the National Congress has given its approval to the Next BILL OF LAW: " ARTICLE 1 °.-Enter the following modifications in the decree with force of law N ° 94, of 1960, Law of Administration of the State Railways: 1.-Substitute Article 1 °, by the following: " Article 1 °.-The Company of the State Railways is a legal person governed by public law, is a self-employed company of the State, with its own assets, with its registered office in the city of Santiago and will be related to the Government through the Ministry of Transport and Telecommunications. " 2.-Substitute Article 2 °, by the following: " Article 2 °.-The State Railway Undertaking shall aim to establish, develop, promote, maintain and operate passenger and cargo transport services by means of railways or similar systems, and complementary transport services, whatever their mode, including all activities (a) the necessary measures to ensure compliance with this objective. It may also commercially exploit the assets of which it owns. This social object may be carried out directly or by means of contracts or grant of concessions or through the constitution, with natural or legal persons, Chilean or foreign, of limited companies that, for all legal purposes following their constitution, they shall be governed by the rules applicable to public limited liability companies. Complementary transport services may be provided only by means of contracts, concessions or partnerships agreed with third parties, in accordance with the provisions of this Article. The participation of third parties in the companies formed by the Company for the fulfilment of its purposes and the granting of concessions, must be carried out by means of public tender, in whose bases will be established clearly and precisely the elements of the essence of the social pact or the concession contract. Companies and concessions which are subject to the provision of minor services are excluded from this requirement. The Company may, in any event, conclude acts or contracts which, legally or in fact, involve the disposal of the strip of land, bridges and works of art constituting the route and railway. It is excluded from this prohibition acts or contracts which fall on land which is disused because of modifications to the route of the line or the change in the location of stations or because the railway has been lifted, by virtue of express authorisation given by the President of the Republic. Likewise, in any contract, concession to contribute that implies to give exclusive use of the railway line in all or part, will be essential condition of the contract, or of the concession, or of the contribution to the society, that the use of the road will be allowed to third parties the basis of an equal and non-discriminatory tariff system. The acts and contracts performed by the Company in the development of its rotation shall be governed exclusively by the rules of private law, in all that which is not contrary to the rules of this decree with force of law. " 3. 4.-Attaché following Title II "Of the Administration", the following heading: "Paragraph 1 of the Directory (a) Of its composition and description". 5.-Substitute Article 5 °, by the following: " Article 5 °.-The administration of the Company shall be replaced by the following: He will be a member of the Board of Directors of seven members, with the free appointment of the President of the Republic, who will also appoint one of them to perform as Chairman of the Board of Directors. To be a Director it will be necessary to meet the following requirements: a) To be Chilean. b) Be at least 21 years of age. (c) Not having been convicted of a crime that deserves a penalty. (d) to have a university professional title or to have performed, for a period of not less than three continuous years or not, a higher executive position in public or private companies. The position of director shall be incompatible with that of Minister of State or Deputy Secretary. The Board, in addition, will be composed of a representative of the workers, who will only have the right to speak, will last two years in office, will be elected in secret and direct voting by the workers of the Company and will be re-elected until for four consecutive periods. The election will be convened by the General Manager for the day, time and specific places. The call for election must be advertised for the knowledge of the staff, with no less than eight days in advance of the one set for its realization. In any event, the choice must be made no less than 15 days in advance of the date of expiry of the period of the representative of the working person. " 6.-Add to Article 5, the following point (b): "(b) The inability and recusal of the Directors." 7.-Add, following point (b), new, as Articles 5 ° A and 5 ° B, the following, new: " Article 5 ° A.-They are not able to perform the position of Director: 1.- by itself, their spouses, their legitimate relatives up to the third degree of consanguinity and second of affinity, or by persons who are linked to them by means of adoption, or through natural persons or legal persons in whom they have control of their administration, possess or acquire-at any degree-interest exceeding 10% in undertakings (a) for transport or in undertakings in which the Company is involved or is a party or has an interest in concessions given by the undertaking to third parties. 2.-The persons who hold the office of President, Vice President, Secretary General and Treasurer in the central directives of the political parties or in national directives of trade unions or unions. Article 5 (B)-Directors may only be disabled to intervene in a given business, in the interests of personal interest or of their spouse or of their consanguine relatives in the entire straight line or up to the fourth degree of collateral or by the affinity up to and including the second degree, or having an intimate friendship or enmity with that or those to whom the matter is concerned. The recusal must be deducted from the Directory until the moment in which it is resolved on the matter in respect of which the inability is alleged. The recusal must be accompanied by the evidence justifying the causal claim and, in the case of a testimonial proof, it shall be attached by means of sworn statements to the Public Notary. The President shall notify the Director concerned of the challenge, which shall inform the Board in writing, within 48 hours. The President of the Board or who does his or her times, with or without the report of the Director concerned, shall immediately quote an extraordinary session of the Board of Directors to resolve the challenge. The ruling of the Board will not be subject to any appeal. As long as the recusal is not resolved, the Board shall refrain from resolving the matter in which it is affected. The Director, who is affected by a recusal, must immediately inform the Board of Directors and refrain from participating in the discussion and voting on the matter. Infringement of this obligation shall be deemed to be a serious misconduct. In the event where the claim is brought to the attention of the person concerned after the decision of the case, it must be valid within five working days of the date on which the person concerned became aware of the decision. The Board will only admit it to the event in which the vote of the Recovered Director has been decisive in order to achieve the quorum required by the law, depending on the matter in question. The Board of Directors, in a specially convened session, will have to decide again on the subject in which the recusal is concerned, while the fulfillment of the previous decision is suspended. The notification of the recusal shall be made by letter delivered at the address of the person concerned to the Company, by the Secretary or Minister of Public Faith. " 8.-Add following Article 5 ° B, new, the following point (c), new: "(c) The responsibility, rights, obligations and prohibitions of Directors. 9.-Add-in, following point (c), new, as Articles 5 ° C, 5 ° D, 5 ° E and 5 ° F, the following, new:" Article 5 ° C.-The function of Director is not (a) to be delegated and exercised collectively, in a legally constituted room. Each Director has the right to be fully informed and documented at any time, by the General Manager or who does his or her times, of everything related to the Company's progress. This right must be exercised in a way that does not hinder social management. Article 5 (D)-The Directors shall use in the exercise of their duties the care and diligence which men ordinarily employ in their own businesses and shall be jointly and severally liable for the damage caused to the Company by their Painful or guilty actions. Government approval, or of the Comptroller General, or any other administrative authority, where applicable, of the memory and balance sheet, or of any other account or general information presented by the Board, does not release the Directors of personal responsibility corresponding to them for specific acts or business. The specific approval of these persons does not exonerate them from that responsibility, if they have mediated a slight, serious or intentional fault. Article 5 ° E.-The Directors are obliged to keep a reservation with respect to the business of the Company and the information to which they have access by reason of their position and which has not been officially disclosed by the Board. It shall not govern this obligation when the reservation injures the Company's interest or relates to acts or omissions that constitute an infringement of the laws. Article 5 ° F.-The Directors are prohibited: 1) Adopt policies or decisions that do not have the purpose of fulfilling the object of the Company in the form established in this law or pursue to benefit their own interests or those of third persons with who have relationships of kinship, intimate friendship or commercial or political interests. (2) Prevent or impede investigations aimed at establishing his or her own responsibility or that of the executives in the management of the company. 3) Induce managers, executives, dependents or auditors, to render irregular accounts, to present untrustworthy or false information and to hide information. 4) To borrow money or assets from the company, or to use it for their own or third parties, with whom they have a relationship of kinship, intimate friendship or commercial or political interests, the goods, services or credits of the company, and 5) incur unlawful or immoral acts, or contrary to the rules of this law or to the social interest, or use of his or her charge to obtain undue benefits or perks for himself or for third parties with whom they have a relationship of kinship, intimate friendship or commercial or political interests. " 10.-Add to Article 5 ° F, new, the following letter (d) new: "d) For the remuneration of the Directors." 11.-Add, following point (d), new, as Article 5 ° G, the following new: " Article 5 ° G.-The Directors and the representative of the workers shall receive a diet equivalent to 8 monthly tax units per session to attend, with a maximum of 16 of these units per calendar month. The President, or who subrogates it, will receive an equal diet, increased by 100%. " 12.-Article 5 (g), new, point (e), new: "e) of the cessation of the duties of the Director." 13.-Add, following point (e), new, as Article 5 ° H, the following new: " Article 5 ° H.-Are causal (a) Renunciation, accepted by the President of the Republic, or submitted to express request of the Republic: (b) Emotion, by supreme decree founded, issued through the Ministry of Transport and Telecommunications, due to a serious lack of compliance with the obligations as Director. Serious misconduct, inter alia, for unjustified inassistance to three consecutive sessions or to six sessions of the Directory, ordinary or extraordinary, during a calendar semester; and, not to keep the due reserve provided for in Article 5 ° E on the information relating to the Company. (c) Sic or physical capacity, and (d) Overvenience of any causal of inability, in which case the Director concerned shall cease immediately in office. The existence of causals (c) and (d) will be established by the Minister of Transport and Telecommunications, previously hearing the affected. This resolution may be appealed to the Court of Appeals of Santiago, which will be dealt with in accordance with the rules governing the processing of the protection resource. The term of office of the Director shall be made available by supreme decree, with the existence of the causal effect of the cessation of the Director's duties. The replacement of the Directors shall be made in accordance with the provisions of Article 5. " 14.-The following point (f), new: "f), of the operation of the Directory". 15.-Add-in, following point (f), new, as Articles 5 ° I, 5 ° J and 5 ° K, the following, new: " Article 5 ° I.- The Board shall meet the majority of its members in exercise and shall adopt its agreements by a majority of the votes of its members present. In the event of a tie, a special session will be held to address it and, if the tie is to be subsist, the vote of the President of the Board will be directed or who will do his or her times. The Directory will be in ordinary or extraordinary form. It is ordinary sessions that determine the directory itself for specific days and hours, in which all the subjects that the President includes in the respective table will be treated, that must be communicated to the Directors with no less 24 hours in advance of the date of the session. The Directory may not establish more than two regular sessions per month. It is extraordinary sessions in which the Directory is specially convened to know exclusively of the subjects that motivate the call. This may be at the initiative of the President or at the written request of three Directors, at least. The summons for extraordinary session shall be made at an advance of not less than 48 hours and shall expressly contain the matters to be dealt with therein. Article 5 ° J.-The Company may only hold acts or contracts in which one or more Directors have an interest in themselves or as representatives of another person, when such operations are known and approved by the Board and are in accordance with equity conditions similar to those normally prevailing on the market. It is presumed that there is an interest of a Director in any negotiation, act, contract or operation in which he or she is required to intervene, his/her spouse or his/her relatives up to the second degree of consanguinity or affinity, or the companies or companies in the which is a director or direct owner, or through other natural or legal persons, of 10% or more of its capital. Infringement of this Article shall not affect the validity of the operation. However, the company, without prejudice to the administrative and criminal penalties which correspond to it, will be entitled to claim compensation for the damage caused and to reimburse the Company by the Director concerned, a sum equivalent to the benefits which it, to its relatives or to its representatives, has reported such negotiation. The same right shall apply to third parties who are affected by it. Article 5 (K.)-Of any deliberation and agreement of the Directory, it must be recorded in a book of minutes; that it must be followed by a correlative and to which it will be incorporated by strict order of occurrence, without leaving fojas or spaces in white. The minutes may be written by any means that guarantee their fidelity, strictly forbidden to make intersperations, deletions or adulterations that may affect them. The minutes shall be signed by all the Directors who have attended the meeting. If any of them die or become impossible, for any reason, to sign it, the same shall be recorded in the respective circumstance or impediment. The act shall be deemed to have been approved from the moment it is signed by the Directors who attended the session, except for the existence of any of the situations set out in the preceding paragraph. The agreements contained in the minutes can only be implemented once it has been approved. The minutes shall be deemed to have been approved from the time of signature and, from that date, the agreements to which it relates may be carried out. The Director who wishes to save his/her responsibility for any act or agreement of the Board, shall record in the minutes his opposition. Similarly, before signing it, any Director shall have the right to record in it the inaccuracies or omissions contained in it, according to his opinion. ' 16.-Delete Articles 6 ° and 7 °. 17.-Rule 8 °. 18.-Article 5 (k), new, (g), new: "g) of the powers of the Board". 19.-Substitute Article 9 °, by the following: " Article 9 °.-The Board of Directors shall be responsible for administration and representation. of the Company, with the most extensive and absolute faculties and without other limitations than those expressly established in this decree with force of law. The Directory shall also: (a) Designate, in its first session and among its members, the Director who will serve as the Vice-Chair of the Board. The Vice President shall replace the President in case of absence or temporary impossibility of the President to exercise the office. b) Designate the General Manager and the Executive of the Company that must replace it temporarily in the event of the absence or temporary impossibility of the latter for the exercise of the position. The General Manager shall be appointed or removed in a specially convened session; (c) Rule out the regulations and rules which he considers appropriate to regulate the internal organisation of the undertaking and its proper functioning; the invitation to tender referred to in Article 2 for the purposes of granting concessions or constituting limited liability companies with third parties. It shall also expressly approve the text of the concession contracts and the statutes of the public limited liability companies which it agrees to constitute. (e) Establishing and modifying staff plants, setting and determining their remuneration and benefits, and approving the internal working regulations to be decided by the General Manager; (f) Approving and amending the annual budgets of revenue, expenditure and investments, and to establish the rules necessary to monitor compliance. (g) To decide on the quarterly and annual financial statements to be submitted by the General Manager, in accordance with the rules established by the Directory and the principles and systems of accounting applicable to the public limited liability companies. h) Approve the creation of offices, agencies or representations within the country or abroad, and i) Confer general powers to the General Manager and special to other executives or to abog In the case of the company and, for specific and specific cases, third parties. These powers may revoke and limit them at any time, without any expression of cause. If any, the Directory may: (1) constitute the Company in endorsement, guarantor or co-debtor of third parties, natural or legal, and 2) make donations. "20.-Add following Article 9 °, the following heading:" Paragraph 2 ° Of The General Manager. "21.-Replace Article 10, by the following:" Article 10.-There shall be a General Manager who shall be appointed and removed by the Board in the manner set out in Article 9 (b). The remuneration and other terms of the General Manager's contract of employment shall be determined by the Board at the time of its appointment. This agreement shall require a favourable vote of the absolute majority of the Directors-in-Office. "22.-Add, following Article 10, the following Articles 10 A, 10 B, 10 C and 10 D, new:" Article 10 A.-Corresponding to the General Manager the execution of the Board's agreements, the permanent supervision of the administration and operation of the Company and the extrajudicial and judicial representation thereof, with all the powers provided for in the second subparagraph of the Article 7 of the Code of Civil Procedure. The General Manager, without any express mention, will enjoy all the administrative powers necessary for the fulfillment and development of the Company's normal rotation, in addition to the powers that the Board expressly delegates to it. However, prior agreement of the Directory shall be required to: (a) acquire, tax and dispose of real estate or rights constituted thereon; (b) Sell, transfer, transfer or lease assets of the fixed assets of the Company whose value exceeds 1,000 monthly tax units; (c) Hire appropriations in excess of one year, and (d) Transigir and subject to commitment. Article 10 B.-The position of General Manager is incompatible with that of the Director of the Company. The General Manager shall have the same inabilities, responsibilities, obligations and prohibitions as Articles 5 ° A, 5 ° B, 5 ° D, 5 ° E and 5 ° F provide for the Directors. Article 10 C.-The General Manager will attend the Directory sessions with the right to speak and will respond with the members of the Board of all the agreements that are harmful to the Company, unless he leaves the record of his opinion to the contrary. Article 10 D.-The General Manager, if he is summoned to acquitting positions, in matters of employment, may appear personally or through the chief of staff or the person in charge of labor relations, which shall be expressly understood 23.-Deroganse Articles 11 and 12. 24.-Substitute Article 13, by the following: " Article 13.-The workers of the Company shall be governed by the rules of this decree with force of law, by the provisions of the Labour Code and its complementary rules and by the decree with force of law N ° 3, 1980, of the Ministry of Transport and Telecommunications. As a result, it will not be applicable to them to apply any rules affecting workers in the State or their undertakings. For all legal purposes, they are considered as private sector workers. Only the quality of the workers will be those persons who perform permanent duties, for half a day or more than half a day in the Company and whenever there is a link of subordination or dependence with this one. The provision of services per hour or without a link of subordination or dependence with the Company, shall be governed by the rules of the Civil Code. Workers who, at the date of validity of this law, are affected by the pension scheme of the former State Railways ' Social Welfare and Reestablishment Fund, shall have the right to remain within that system. " 25. Articles 14 and 15. 26.-Substitute Article 16, by the following: "Article 16.-Any person providing services to the Company, whatever its nature, shall be liable for any damage or damage that it irrogues to it, to mediate or to blame on its part." 27.- Articles 17, 18, 19 and 20 are repealed. 28.-Substitute, in the second paragraph of Article 21, the final sentence: "but by decree founded by the Director", by the following "but by agreement of the Directory". 29.-Deroganse Articles 22, 24, 25, 26, 27, 28, 29, 31, 32, 32, 33, 34, 35, 36, 37, 38, 39, 40 and 41. 30.-Replace Article 23, by the following: " Article 23.-The rules contained in Article 5 ° F of this decree with force of law are applicable to the workers of the Company. The offence to any of them constitutes a cause for the expiry of the respective employment contract. '31.-Substitute the heading of Title IV, by the following:' From the Heritage, the Economic Regime and the Audit (a) of the Heritage '. 32.- Add the following point (b) of Article 42: "b) Of the economic system." 33.-Substitute Articles 43 and 44, for the following: " Article 43.-The Company in its activities shall be subject to the same financial rules, accounting and tax rules governing the open stock companies and their balance sheets and State of affairs shall be subject to audits by external audit firms of recognised prestige. Article 44.-The annual profits that the Company obtains will be transferred to general income of the Nation, except that its Board, with the favorable vote of no less than five of its members, agrees to retain all or part of them as a reserve of capital. This agreement shall be subject to the prior written authorization of the Ministry of Finance. "34.-Substitute Article 45, as follows:" Article 45.-The Company may, in any event, compromise the public credit. It will also not be able to obtain financing, credits, contributions, subsidies, guarantees or guarantees from the State or any of its agencies, entities or companies, but in cases where this is possible for the private sector and in the same conditions. Except for this prohibition, the contributions and guarantees to which the Fisco is committed under this law and the renewal of the guarantees, guarantees and guarantees granted before the publication of this law. " 35.- Replace Article 46, by the following: "Article 46.-At the end of the Company, its assets shall be transferred to the Chilean Fishery, with the benefit of the inventory." 36.-Derogase Article 47. 37.-Substitute Article 48, as follows: " Article 48.-The Government may not compel the Company to provide it with any service without due economic compensation, which shall be subject to the general system of tariffs in force in the Company, 38.-Substitute Article 49, by the following: " Article 49.-The assets of the fixed assets of the Company whose book value exceeds 500 monthly tax units may only be sold at auction or Article 50 is determined by the Board of Directors. 40.-Add, following Article 49, the following point (c), new: "c) Of the audit." 41.-Substitute Article 51, by the following: " Article 51.-The Company shall be subject to the tuition and audit of the Superintendence of Securities and insurance on the same terms as public limited liability companies. "42.-Add-in, following Article 51, as Article 51A and 51B, the following, new:" Article 51 A.-Any report of the external auditors shall be sent from immediate to the Superintendence of Securities and Insurance for its review and analysis. This review will be subject to generally accepted audit principles to determine the transparency and operational and administrative results of an open public limited company. The Superintendency of Securities and Insurance report should consider the fulfillment of the Company's purposes, the regularity of its operations, and to indicate whether or not it exists the responsibility of its directors or executives. Article 51 B.-The Company will only be affected by the control of the Comptroller General of the Republic in the same cases, opportunities, matters and form in which a private limited company would be open. However, the contributions and subsidies received by the Company of the Fisco, in the terms of Article 45 of this decree with force of law, will be subject to this control. " 43.-Articles 52, 53, 54, 55, 56, 57, 58, 59, 60 and 61. 44.-Derogase Title V. 45.-Derogse Articles 62, 63, 64, 65, 66, 67 and 68. 46.-Substitute Articles 69 and 70, for the following: " Article 69.-At points where the public roads cross the railway track, the Company shall only be required to maintain in function a practical service of signals enabling the Those who pass through them perceive the proximity of a crossing to distance. In those crosses that are determined in the supreme decree referred to in the final paragraph of this article, the Company will be obliged to build barriers and keep them. The barriers will be closed with due anticipation at the passage of the trains, opening immediately to allow the transit through the road. From the date of validity of this law, the costs of construction, signalling, maintenance or preservation, repair and protection of a new railway crossing shall be the responsibility of the body or institution that requests the construction of the crossing. They shall also bear the costs necessary to maintain the service of the signals referred to in the first subparagraph, or a guardrail, in the event of a supreme decree. Empower the President of the Republic to make by supreme decree issued through the Minist The Ministry of Transport and Telecommunications will modify the list of crossings at the level where the public roads pass through the railway and where it must be fulfilled with the obligations imposed in this article, mentioned in the Supreme Decree No. 500, of 1962, The former Deputy Minister of Transport of the Ministry of Economy, Development and Reconstruction and its amendments. Article 70.-The obligations imposed by the first and second subparagraphs of the preceding Article shall not be governed by the undertaking, where the undertaking maintains automatic signalling devices. " 47.-Articles 71, 72, 73 and 75 shall be deleted. 48.-Enter the following amendments to Article 76: (a) In the first paragraph, replace the phrase "Department of Rail Transport of the Ministry of Economic Development and Reconstruction" by " Ministry of Transport and (b) In the second subparagraph, delete the sentence "after authorization from the Department of Rail Transport" and delete, also, the commas (,) that precede and follow such prayer. (c) Defeat its third indent. 49.-Attaché, following Article 76, as article 77, the following, new: " Article 77.-The Company shall be governed by the rules of this decree with force of law and, as not contemplated by it, by the rules governing public limited liability companies. open. As a result, the general or special provisions governing or governing the future of State-owned enterprises will not be applicable to any legal effect unless the new legislation expressly extends to the Company. By way of derogation from the foregoing paragraph, the rules laid down in Article 11 of Law No 18.196 shall continue to be governed by this undertaking. " 50.-Substitute Articles 1 °, 2 °, 3 ° and 4 ° transients, for the following: " Article 1 °.-The President of the Republic within ten days of the publication of this law shall designate the President and the other Directors of the Company, who will assume their duties once the respective Supreme Decree has been fully processed. Article 2 °.-The current Director of Railways and the other executives of the Company will continue to perform their duties in the capacity of the interim until they are not made, by the Directory, to their confirmation or to be designated to their respective replacement. The Director and the executives who are not confirmed in their posts by the Board and who have the quality of workers of the Company, will be entitled to the eviction, to the indemnities established by the Labour Code and those of the present law, if they proceed. Article 3.-The provisions of Supreme Decree No. 1.157 of 16 September 1931, which lays down the definitive text of the General Law of Railways shall not apply to the Company or to the companies which for the exploitation or use of the railway they constitute, in accordance with the provisions of Article 2 of the decree with force of law No 94, as far as they are contrary to those of the present decree with force of law. " 51.-Substitute the transitional article 5 °, by the following: " Article 5.-Authorize the Fisco so that, within three years, it constitutes with the Company of the Railway of the State one or more companies for the purposes set out in Article 2 of this decree with force of law and to subscribe up to a maximum of 1% of the capital of those societies, the one that will be obliged to dispose within a maximum period Two years after the date of the formation of the respective companies. These companies shall be constituted as public limited liability companies and shall be subject to all the provisions relating to public limited liability companies. The formation of companies between the Company and the Fisco will be exempt from the public tender procedure established in Article 2 of this decree with force of law. However, any sale, sale, transfer or transfer of shares of the Company or of the Fisco, in any of these companies, shall be strictly in accordance with the rules of Article 2 of this decree with force of law. " Article 2.-The employment contracts of the workers of the State Railways Company, which, without any continuity solution, are contracted in the companies that it constitutes, will maintain their validity and continuity with the new employment in the terms provided for in the second paragraph of Article 4 of the Labour Code, from the date of the formation of the respective company. The workers referred to in the foregoing paragraph may only apply for the eviction of Law No 7,998 and the compensation for years of services to which they are entitled, when they cease to provide services to the new company. The eviction and compensation will be determined in the manner provided for in Article 3 of the Decree with Force of Law No. 3 of 1980, of the Ministry of Transport and Telecommunications, provided that they have not exercised the right contemplated in the Article 1 of Law No 18,747. The workers referred to in this provision who, at the date of this law, are affected by the pension scheme of the former State Railways and Social Welfare Fund, will have the right to remain within the (a) ARTICLE 3.-The President of the Republic, within a period of one year, shall establish the current market value of the assets that make up the Company's fixed assets, even if the values it determines are lower than the current book values. This recovery may be partially made in the year, by means of supreme decrees, issued through the Ministry of Transport and Telecommunications, which must also be signed by the Finance Minister. The values thus determined will become the new book value of such goods. The Company must establish a system of depreciation of its assets on the basis of use, wear and age, which can only be altered every 10 years, subject to the authorization of the Internal Revenue Service. Article 4 °.-Authorize the President of the Republic so that, by means of one or more supreme decrees issued by the Ministry of Finance, grant the guarantee of the State, up to the maximum amount equivalent in national currency to three (a) million units of promotion, to the bonds issued by the Company of the State Railways, expressed in units of promotion, under the limit set out in this paragraph. These resources shall be used exclusively to pay, to novate or to terminate in any form their financial obligations. It also authorized the President of the Republic to grant, through one or more supreme decrees issued by the Ministry of Finance, the guarantee of the State to the credits it contracts or to the bonds issued by the Company of the State Railways to finance the expenses that demand the fulfillment of its rehabilitation plan, whatever the currency in which they are agreed, up to a maximum amount equivalent to four million units of promotion. The guarantees granted by the State in accordance with this law shall be extended to the principal and interest bearing the bonds and the credits mentioned in the preceding incites, commissions and other expenses that are incurred, up to the actual payment of such bills. obligations. ARTICLE 5.-The Company may publicly offer the sale of those properties of its domain that are expendable for the railway operation. The disposal shall be made to the natural or legal person who made the offer economically more appropriate, without prejudice to the fact that the Company may reject all tenders if it considers them not to be in conformity with the actual market value. In the latter case and up to a maximum amount of one million five hundred thousand promotion units, you will be able to sell them to the Fisco, through the Ministry of National Goods. The price in no case shall be less than the commercial value that is fixed by experts designated for the purpose by the Board of the Company and the Fisco, by common agreement. This value may be paid in cash or by novation for the change of the debtor, and must be allocated, in full and exclusively, to the reduction of the Company's liability. ARTICLE 6 °.-Authorize the Transportes de Transportes de Passiones Metro S.A. so that, subject to the authorization required by Article 3 of Decree Law No 1,056, 1975, it constitutes the Company of the State Railways, which is limited to the to serve suburban passenger transport services and the commercial exploitation of their goods in complementary activities or services. Third parties may participate in these companies. In addition, both companies, jointly or separately, are authorized to receive shares, equity shares or social interest in foreign companies, in payment of advisory services or technical assistance that they provide abroad. In no case, this authorization is enabled to contract economic commitments or make investments in money or assets in such companies, unless the investments that are made are financed exclusively with the profits that are received from those companies. ARTICLE 7 °.-The Company shall formulate three-year development plans. In case the formulated plan requires, in all or part, fiscal financing, it must be submitted to the Ministry of Transport and Telecommunications for approval, which must be provided by the Supreme Decree of this Ministry, which will be signed by the Finance Minister. This decree will define the obligations that the Government and the Company contract. The Ministry shall approve, amend or reject the plan within 60 days from the date of its submission. The Budget Law may authorize transfers to the Company of the State Railways, the amount of which will not exceed the supply needs referred to in the development plan, which may be used solely and exclusively to: compensate for explicit or implicit subsidies that are perceived by other modes of land transport; finance investments in infrastructure and equipment; and to deal with the drag debt in force when this law is published. Article 8 °.-The driving of railway vehicles by rail means to be in possession of a license that accredits suitability and technical specialization, to drive the class or category of vehicle that corresponds. The Company will grant the license previously indicated to circulate on its tracks, to those who comply with the requirements laid down in its internal regulations. TRANSITIONAL PROVISIONS ARTICLE 1 TRANSITIONAL PROVISIONS-Facullance of the Company of the State Railways in order to grant compensatory compensation to workers who, as at 31 May 1991, were providing services in the State, and always which are evicted for the needs of the Company within three years of the publication of this law. This allowance shall be determined on the basis of the average of the taxable remuneration of the three months preceding that of the cessation, without discounting the increase referred to in Article 2 of Decree-Law No 3,501 of 1980 and shall be increased in the the same percentage and at the same date when, after granting, general remuneration adjustments are granted for the public sector. This benefit will be compatible with the indemnities that correspond to them at the end of your work contract and will not be taxable or constitute income for any legal effect. The compensatory allowance referred to in the preceding subparagraph shall be granted for the month following the end of the term of office and the amount and time limit for the collection shall be determined in accordance with the following: (a) For workers who, at the date of termination of their services, have at least 25 years of impositions or computable time, of which at least 10 of them correspond to the actual services provided in the said undertaking, the profit shall consist of a monthly sum equal to a threeyear of the remuneration referred to in the first subparagraph, for each year or fraction exceeding six months of impositions or computable time, with a maximum of thirty threeths. This benefit shall be extended to the date on which the beneficiary fulfils the conditions for obtaining a pension for seniority or old age or until the date on which the entitlement to an invalidity pension is recognised or the right to be penalised under the Article 68 of Decree Law No. 3,500 of 1980, or until the date of his death. (b) For workers who do not meet the requirements referred to in point (a) to the date of cessation of their services, the benefit shall consist of a monthly sum equal to the taxable amount referred to in the first subparagraph, and shall be paid during a number of months equal to the top integer resulting from dividing by two the number of years of effective service that the worker has provided in the Company. Without prejudice to the first subparagraph, the benefit provided for in point (a) above shall be taxable and taxable, and the beneficiaries shall have the quality of the number of applicants, and the contributions and contributions shall be deducted by the undertaking. taxes that correspond, being subject in this matter to the legal norms applicable to the employers, which will not configure any employment relationship. ARTICLE 2 TRANSITORY.-The benefits set out in the previous article shall be incompatible with any income from a contract of employment or the provision of services which the beneficiary celebrates with the Company or with those companies in which the latter has a holding or with the State or with companies in which it participates or with the dealers. The same incompatibility will affect those who, at the time of this law, have the quality of the pension for services provided to the Company of the State Railways, or to those who acquire such quality after. Workers who unduly receive the benefits provided for in Article 1 of the transitional measure must repay the sums paid for such concepts, adjusted in accordance with the variation in the Consumer Price Index, without prejudice to any civil or criminal liability that may arise from such a fact. ARTICLE 3 TRANSITIONAL.-Workers who, as at 31 May 1991, were providing services to the State Railways Enterprise and within three years from the date of publication of this Law, are contracted, without a solution of continuity, by the companies in which the Company has shareholding or by the dealers, they will be entitled to a monthly compensation of an amount equal to 50% of the average of the remuneration (a) taxable in the three months preceding the end of the service in the Enterprise, which shall be paid during a number of months equal to the higher integer resulting from dividing by two the number of years of effective services that the worker has provided to the Company. The workers referred to in the preceding paragraph shall not be entitled to this compensation, which shall be incorporated into the companies in which the shareholding of the Company added to that of the Fiscus or another State entity constitutes a majority. The incorporation of the workers to the companies that constitutes the Company according to the article 2 ° of the Decree with Force of Law N ° 94, will be voluntary and subject to the acceptance of the Company of the State Railways and of such companies or dealers. ARTICLE 4 (TRANSITIONAL).-The Budget Law may authorize, annually, transfers to the Company of the State Railways to finance or reimburse the expenditure arising from the term of the staff of the Company that has the right to compensation for years of service and to the special provisions laid down in the preceding Articles 1 and 3, to the effect of this law and to the total extinction of those obligations. Article 5 TRANSITORY.-Authorize the President of the Republic to transfer to the Company of the State Railways up to the sum of 17,553 million pesos in the year 1992, under item 50-01-03-25-33.104 of the Public Treasury. Likewise, the greatest fiscal expenditure that, during the year 1992, represents the provisions of article 5 of this law, will be made under the aforementioned item of the Public Treasury. Article 6 TRANSITORY.-The first development plan, as referred to in Article 7 of this Law, must be submitted by the Company within 180 days from the date of publication of this law. ARTICLE 7 TRANSITORY.-Without prejudice to the provisions of Article 8 °, the workers of the Company, who at the date of validity of this law are in possession of the mobilization card and have approved the corresponding training courses who enable them to drive certain railway vehicles, may continue to drive until the expiry of their respective card. Article 8 TRANSITORY.-The President of the Republic shall be empowered to give, within a period of one year, the consolidated, coordinated and systematized text of the Organic Law of the Company of the State Railways, in which they must be entered the amendments referred to in this law. '; Having complied with the provisions of Article 82 of the Constitution of the Republic of the Republic of the Republic of Mexico, and because I have had to approve and sanction it, I therefore promulgate and take effect as the Law of the Republic. Santiago, 25 September 1992.-PATRICIO AYLWIN AZOCAR, President of the Republic.-German Correa Díaz, Minister of Transport and Telecommunications.-José Pablo Arellano Marin, Minister of Finance. What I transcribe for your knowledge.-Salute to you-Sergio González Tagle.-Deputy Minister of Transport.-CONSTITUTIONAL COURT BILL AMENDING THE DECREE WITH FORCE OF LAW N ° 94, OF 1960, LAW OF THE COMPANY OF THE RAILROADS OF THE The Secretary of the Constitutional Court, who subscribes, certifies that the Honorable Chamber of Deputies sent the bill enunciated in the area, approved by the National Congress, in order for the Court to exercise control of the constitutionality of the following provisions of the project: points (c) and (d) of the first and second indent of Article 5 (H) of the 13th subparagraph of Article 43 of Article 51 of Regulation No 41; Article 51 B of N ° 42 and Article 77 of N ° 49 which are referred to in the first article of the draft, and which, by judgment of 15 September 1992, stated: 1. The provisions of points (c) and (d) of the first and second indent of Article 5 (1) (h) of the first subparagraph of Article 51 B, Article 77, of the first article of the draft submitted, is constitutional. 2. That it is not for the Court to rule on the provisions of Article 43, N ° 33, and Article 51 of N ° 41 of the first article of the draft submitted, for dealing with matters which are not of an organic law constitutional. Santiago, September 16, 1992.-Rafael Larraín Cruz, Secretary.