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
Posted: 14 May 2019 Last revised: 16 May 2019
Date Written: April 19, 2019
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: Suggested Citation