Corporate Governance Country Assessment : Colombia

This report assesses the corporate governance policy framework, enforcement and compliance practices in Colombia. The capital markets are small relative to the economy and trading volume is low. The corporate sector is largely owned and controlled by family groups and conglomerates. The challenge is to create an environment where medium-sized companies can raise capital in the market and help them make the transition from tightly-controlled family firms to public companies. While pension funds represent a large and rapidly growing source of funds, they are reluctant to invest in equities. It has been demonstrated across countries that capital market development correlates positively with the degree of shareholder protection and good corporate governance. Awareness of the importance of corporate governance issues is growing. Success stories of privatizations linked with good corporate governance highlight the importance of the issue. Colombia is an interesting example of the interplay between legal changes and voluntary initiatives based on the incentive to attract capital. It has put a minimum corporate governance disclosure regime in place for companies that wish to be eligible for pension fund investments. The report makes policy recommendations that may be grouped under three broad headings: legislative reform, institutional strengthening and voluntary/private initiatives. The report recommends (1) adopting a securities bill as proposed by the securities regulator Supevalores; (2) adopting international standards and creating an independent audit oversight board; (3) improving enforcement; (4) enhancing compliance monitoring with the code of good governance; and (5) creating a director training organization.

Bibliographic Details

Main Author:	World Bank
Format:	Accounting and Auditing Assessment (ROSC) biblioteca
Language:	English en_US
Published:	Washington DC 2003-08
Subjects:	ACCESS TO INFORMATION, ACCOUNTABILITY, ADVISORY SERVICES, AUDIT COMMITTEES, AUTHORITY, AUTHORIZATION, AUTHORIZED CAPITAL, BALANCE SHEET, BOARD, BOARD MEMBERS, BOARD OF DIRECTORS, BOLSA, CAPITAL INVESTMENT, CAPITAL MARKET, CAPITAL MARKET DEVELOPMENT, CAPITAL MARKET LAW, CAPITAL MARKETS, CASH FLOW, CLASSES OF SHARES, COMPANY, CONFEDERATION, CONFLICT OF INTEREST, CONFLICTS OF INTEREST, CONGLOMERATES, CONSTITUTION, CORPORATE CONTROL, CORPORATE GOVERNANCE, CORPORATE PERFORMANCE, CORPORATE RESTRUCTURING, CORPORATE STRATEGY, CORPORATION, CORPORATIONS, COURT PROCEDURES, COURT SYSTEM, DECREE, DEGREE OF CONTROL, DISCLOSURE, DIVIDENDS, DUE DILIGENCE, EMPLOYMENT, ENVIRONMENTAL LEGISLATION, EQUITY INVESTMENT, EXECUTION, EXPENDITURES, FAIR MARKET VALUE, FINANCIAL CONTROL, FINANCIAL INFORMATION, FINANCIAL INSTITUTIONS, FINANCIAL SITUATION, FINANCIAL STATEMENTS, FIRMS, FIXED INCOME, FOREIGN INVESTORS, FOREIGN SHAREHOLDERS, GOOD GOVERNANCE, INSIDER TRADING, INSOLVENCY, INSOLVENCY LAWS, INSTITUTIONAL FRAMEWORK, INSTITUTIONAL INVESTORS, INSURANCE COMPANIES, INTERNAL AUDIT, LABOR LAW, LAWYERS, LEGAL CHANGES, LEGAL FRAMEWORK, LEGAL LIABILITIES, LEGAL PROVISION, LEGISLATION, LEGISLATIVE REFORM, LIQUIDATION, LISTED COMPANIES, LOCAL LAWYERS, MANAGEMENT, MARKET CAPITALIZATION, MERGERS, MINISTRIES OF FINANCE, MINISTRY OF FINANCE, MINORITY SHAREHOLDER, MINORITY SHAREHOLDERS, NATIONS, NUMBER OF SHARES, OFFERINGS, OWNERSHIP CONCENTRATION, OWNERSHIP DISCLOSURE REQUIREMENTS, OWNERSHIP STRUCTURE, PENSION FUND, PENSION FUNDS, PORTFOLIO, PRICE INDEX, PRIVATE SECTOR, PRIVATIZATIONS, PROTECTION OF MINORITY SHAREHOLDERS, PUBLIC ANNOUNCEMENT, PUBLIC BODIES, PUBLIC COMPANIES, PUBLIC OFFERINGS, PYRAMID STRUCTURES, REGULATORY BODIES, REGULATORY FRAMEWORK, REPRESENTATIVES, RISK MANAGEMENT, SECURITY LAW, SHARE CAPITAL, SHARE OFFERINGS, SHARE OWNERSHIP, SHAREHOLDER MEETING, SHAREHOLDER MEETINGS, SHAREHOLDER PROTECTION, SHAREHOLDERS, SOCIAL SECURITY, STAKEHOLDERS, STATEMENT, STATEMENTS, STOCK EXCHANGE, TAX EXEMPTIONS, TRANSPARENCY, VOTING, VOTING SHARES,
Online Access:	http://documents.worldbank.org/curated/en/2003/08/6556478/colombia-report-observance-standards-codes-rosc-corporate-governance-country-assessment-colombia-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/14553
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