Latin American Capital Markets

440 MIKELUBRANOor transfer shares, obtain relevant information on the corporation on a timely andregular basis, participate and vote in general shareholder meetings, elect members ofthe board, and share in the profits of the corporation.Equitable Treatment of ShareholdersThe corporate governance framework should ensure the equitable treatment ofshareholders, including minority and foreign shareholders. All shareholders should havethe opportunity to obtain effective redress for the violation of their rights. An importantdeterminant of the degree to which shareholder rights are protected is whethereffective methods exist to obtain redress for grievances at a reasonable cost and withoutexcessive delay.All shareholders of the same class should be treated equally, insider tradingand abusive self-dealing should be prohibited, and members of the board and managersshould be required to disclose any material interests in transactions or mattersaffecting the corporation.Role of Stakeholders in Corporate GovernanceA good corporate governance framework should also recognize the rights of stakeholdersin addition to shareholders as established by law and encourage active cooperationbetween corporations and such stakeholders in creating wealth, jobs, andthe sustainability of financially sound enterprises. The corporate governance frameworkshould assure that the rights of stakeholders that are protected by law are respected.Furthermore, where law protects the interests of stakeholders, they shouldhave the opportunity to obtain effective redress for violation of their rights. And allrelevant information—a key element in ensuring that the interests of stakeholders areupheld—should be made available to all stakeholders on a timely basis.Disclosure and TransparencyThe principles focus on three aspects of disclosure: the nature of information thatshould be disclosed, the basis for verification of the information, and the mechanismsused to disclose information. Regarding the content, the corporate governance frameworkshould ensure that timely and accurate disclosure is made on all material mattersregarding the corporation, including the financial situation, performance, ownership,and governance of the corporation. Disclosure should include, but not be limitedCopyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub