 |
|
|
 Business News | March 2005 
Gil Díaz Presents Bill to Congress
 Wire services
| | Finance Secretary Francisco Gil Díaz |
Finance Secretary Francisco Gil Díaz asked Congress to pass legislation expanding shareholder rights and easing requirements for companies to sell shares as he seeks to spur growth of the local stock market.
Gil Díaz's bill, among other provisions, would replace the nation's 30-year-old securities law to reduce by two-thirds to 5 percent the amount of stock shareholders must own to bring lawsuits against company executives, Deputy Finance Secretary Alonso García said at a news conference in Mexico City.
The changes will encourage more companies to raise funds through share sales in Latin America's largest economy, help create jobs and broaden access to capital, Gil Díaz said at the news conference. Mexico's US663 billion-economy has 149 companies listed on its stock exchange, one-tenth as many as South Korea, he said. South Korea is a US667 billion economy.
"Minority shareholders need legal provisions that ensure they won't be victims of abuse," Gil Díaz said. "On the supply side, there are barriers preventing medium-sized companies from entering the stock market."
Mexico is also trying to catch up with the United States after the Securities and Exchange Commission accused TV Azteca SA, the country's second-biggest broadcaster, and its chairman, Ricardo Salinas Pliego, of securities fraud earlier this year. The SEC filed a civil lawsuit on Jan. 4 alleging TV Azteca hid a transaction that netted Salinas US109 million. TV Azteca is subject to U.S. law because its shares trade on the New York Stock Exchange.
Jonathan Davis, head of Mexico's securities regulator, said today his agency's investigation of the case is still under way. |
| |
|
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us