The Latin American Roundtable on Corporate Governance agreed at its eighth annual meeting in Medellin, Colombia on 10-11 October 2007, to develop recommendations to encourage institutional investors to play a more engaged and informed role in promoting better corporate governance in the region.
The Roundtable meeting concluded that involvement of domestic and international institutional investors in promoting good governance practices among investee companies has too often been inadequate. Separate task forces from Argentina, Brazil, Chile, Colombia, Mexico and Peru presented reports on the current state of institutional investor engagement in corporate governance. The results were synthesized in a comparative report that will serve as the starting point for a “White Paper on Institutional Investors and Corporate Governance.” Its policy and best practice recommendations will be developed over the coming year with the support of the country task forces and other international participants for discussion and approval at the next plenary session of the Roundtable.
The Roundtable also addressed a second main issue: the elaboration and implementation of voluntary corporate governance codes to foster transparency and market forces to advance good governance practices. There is substantial activity in the region’s countries to develop such codes. Moreover, a second generation of voluntary codes are under consideration in several countries. A synthesis report summarizes the region’s experiences and identifies lessons learned to support the ongoing efforts of countries in the region to make more effective use of these codes.
The Roundtable meeting brought together corporate governance specialists from securities regulators, stock exchanges, investors, institutes of directors and company representatives from more than a dozen countries of the region, North America and Europe. This was the first time that the Roundtable’s plenary session was held in Colombia thanks to the efforts of organizers – the OECD and IFC – and the hosts, the Financial Superintendency of Colombia (Superfinanciera), the Medellin Chamber of Commerce, Colombia’s Confederation of Chambers of Commerce (CONFECAMARAS), and the Colombian Stock Exchange. The Global Corporate Governance Forum and Government of Spain also supported the event.
Voluntary Corporate Governance Codes:
The Role of Institutional Investors in Promoting Corporate Governance: