The Pacific Alliance: An Opportunity for a Sustainable System of Corporate Law and Governance in Latin America

Forthcoming in Beate Sjåfjell and Christopher M. Bruner (eds), Cambridge Handbook of Corporate Law, Corporate Governance and Sustainability, Cambridge University Press 2020

University of Oslo Faculty of Law Research Paper No. 2019-54

Posted: 14 May 2019 Last revised: 16 May 2019

See all articles by Alvaro Pereira

Alvaro Pereira

University of California, Berkeley, School of Law; Ibero-American Institute for Law and Finance; Universidad de los Andes

Date Written: April 19, 2019

Abstract

This chapter analyses the Pacific Alliance – an economic bloc formed by Chile, Colombia, Mexico, and Peru in 2011 – and its integrated stock exchange, the Mercado Integrado Latinoamericano (MILA). It contends that the Alliance has the potential to foster the transition toward a sustainable economy in Latin America, through a renewed system of corporate law and corporate governance. On the one hand, it asserts that Colombian Law 1901 of 2018, creating the Companies of Collective Benefit and Interest, initiated a healthy regulatory competition in corporate law among member states. On the other, it discusses alternatives to promote sustainable corporate practices through executive compensation, leveraging the legal convergence in corporate governance prompted by the integrated stock exchange. The Alliance’s economic strength and regional leadership further bolster its potential to bring about meaningful changes in the region.

Keywords: MILA, fiduciary duties, executive compensation, corporate governance

JEL Classification: K2, K22, O10, O16, Q01, Q58

Suggested Citation

Pereira, Alvaro, The Pacific Alliance: An Opportunity for a Sustainable System of Corporate Law and Governance in Latin America (April 19, 2019). Forthcoming in Beate Sjåfjell and Christopher M. Bruner (eds), Cambridge Handbook of Corporate Law, Corporate Governance and Sustainability, Cambridge University Press 2020; University of Oslo Faculty of Law Research Paper No. 2019-54. Available at SSRN: https://ssrn.com/abstract=3377266

Alvaro Pereira (Contact Author)

University of California, Berkeley, School of Law ( email )

215 Bancroft Way
Berkeley, CA 94720
United States

HOME PAGE: http://www.law.berkeley.edu

Ibero-American Institute for Law and Finance ( email )

C/ Bárbara de Braganza 11, 3º
Madrid, 28004
Spain

HOME PAGE: http://www.derechoyfinanzas.org/en/author/alvaro-pereira/

Universidad de los Andes ( email )

Carrera Primera # 18A-12
Bogota, DC D.C. 110311
Colombia

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