Tuesday January 26 2016

News Source: Global Exchanges

Focus: Stock Exchange Corporate Governance

Type: General




On 25th January 2016, the Santiago Exchange´s Board of Directors announced an Extraordinary Shareholders´ meeting to vote on a Statutes change which seeks to demutualize Chile´s main exchange. The meeting will be held on March 17, as reported by the company in an official document sent to the Superintendencia de Valores y Seguros (SVS), the local securities and insurance market regulator.

In January 2015, the Exchange´s Board of Directors agreed to create a Strategic Development Committee. The Committee´s objective was to study successful demutualization experiences as in Brazil, Spain, Colombia, Mexico and Canada. It also analysed the benefits and importance of integration between exchanges and central securities depositories in these markets.

The proposal that will be voted at the extraordinary assembly on March 17 considers an amendment to the Santiago Exchange Statutes, in which the requirement to be a shareholder of the institution to operate as a brokerage house is removed. In addition, modifications incorporate a limit on ownership concentration of the Exchange, so that any person or legal entity, individually or together with related persons, may hold directly or indirectly more than 25% ownership of the entity.

In addition, an amendment regarding corporate governance will be added, which will include the participation of a minimum of three independent directors (not associated to brokerage houses), the creation of users´ committees and the obligation of having a Code of Best Practices of Corporate Governance, among other subjects.

If shareholders approve these amendments, the next step will be the SVS revision and approval.

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