Being a minority shareholder in Mexico has never been easy.
Despite the promise of high returns on investments against the
backdrop of long-term economic growth, the struggle for company
information and a say in the running of a company can seem endless.
In the words of one US-based institutional investor, there is "a
deeply entrenched disregard for minority shareholders in Mexico.
Companies do not want to relinquish control. The system is stacked
against us."
Indeed, Vitro, Mexico's biggest glassmaker, recently said it was
considering going on a spending spree in China at a time when
investors are crying out for the company to cut its $1.6 billion
debt.
In the name of accountability, Mexican president Vicente Fox has
signed into law a series of capital market reforms aimed at
upgrading minority shareholders' rights and better protecting
investors' interests. The law, which came into immediate effect on
June 1, brings in...
