| Headline: Fox looks to wake up the market Source: Euromoney Date: July 2001 Author: Robin Emmott
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 five key changes. It requires companies to bring in a capital structure made up of 75% voting shares and 25% non-voting, or restricted shares. | |||||||||||||||||||||||||||||||||||||||||