Strengthening Latin American Corporate Governance
The Role of Institutional Investors
This report reflects long-term, in-depth discussion and debate by participants in the Latin American Roundtable on Corporate Governance. It seeks to encourage the emergence of active and informed owners as an important lever for influencing better corporate governance, adapted to the Latin American context.
Recommendations to strengthen policy and good practices
Chapter 3 sets out policy and good practice recommendations and annotations for policy-makers and regulators (in bold) and for the private sector (in italics) across 11 sub-topics: 1) Encouraging more active involvement of institutional investors (IIs); 2) Distinguishing better governed companies for investment purposes; 3) Formalizing and disclosing II policies related to corporate governance of investee companies; 4) Exercising ownership rights in portfolio companies; 5) Voting at general meetings of shareholders; 6) Encouraging communication between IIs and investee companies; 7) Encouraging communication among various IIs; 8) Improving the functioning of boards of directors; 9) Strengthening the accountability of management; and 10) Addressing II internal corporate governance issues; 11) Exiting from the investment.