Association requests that the “one-share-one-vote” concept is kept in IBGC Code

In light of the possibility of reviewing the “one-share-one-vote” concept in the revision of IBCG – Brazilian Institute of Corporate Governance – Code, the Association of Capital Market Investors – Amec – submitted a letter to the Institute in the end of August with the objective of expressing its members’ concern about the granting of disproportional political power and economic commitment, which opens the way to serious managerial problems.
In the letter, Amec says that “an approach – whether through a hard or a soft law –based exclusively on the disclosure concept is not enough to protect the structure of our capital markets from the consequences of unbalanced interests caused by deviations from the ‘one-share-one-vote’ principle.”
Since its creation, the association has been pointing out problems involving Brazilian publicly-held companies that do not comply with the “one-share-one-vote” principle and that the unbalance of interests is one of the major sources of corporate governance problems.
Click here to read the President Letter 11/2015 sent to IBGC.