Buenos Aires, June 22, 2006 – International
and regional investors meeting today in Buenos Aires at the seventh annual
meeting of the Latin American Corporate Governance Roundtable acknowledged
the progress made by the region’s companies on corporate governance and
published the conclusions from discussions between investors and representatives
of the Companies Circle. The meeting highlighted consensus among
investors and corporations that best practices in corporate governance
create added value for companies.
“The Companies Circle meeting generated great enthusiasm,” said John
Willcox, Senior Vice President of the TIAA-CREF pension fund. “Corporate
governance practices have meant that Brazil and other countries in Latin
America have not been ignored amid ongoing trends in the international
Present at the meeting were specialists, investors, businessmen, and experts
from the region and member countries of the OECD. Countries represented
include Belgium, Brazil, Canada, Chile, Colombia, Costa Rica, Ecuador,
Mexico, Panama, Peru, Spain, the United Kingdom, the United States, and
Venezuela. Although this was the second meeting of the Roundtable to be
held in Argentina, only a small number of Argentinian companies were present.
At this meeting of the Roundtable, speakers emphasized that companies should
be aware that there are various types of investors with differing levels
of commitment. The companies present also requested that investors be clearer
about the criteria on which they base their investment decisions. A further
important point raised was the need to develop creative techniques for
identifying companies that follow good practices.
Roque Benavides, President of the Peruvian mining company Buenaventura,
stated that leading companies are recognizing the importance of good practices
in corporate governance, as well as the need to communicate progress as
investors will increasingly take good practices into account. “Our company
in Peru is controlled, through pension funds, by 3 million Peruvians, but
they are unaware of this fact.”
Benavides added that institutional investors, such as the International
Finance Corporation, also have an important role to play, for it was over
a period of 20 years in which the company received consecutive loans from
IFC that Buenaventura began implementing changes aimed at greater transparency
in its operations.
The Roundtable was organized by the Organization for Economic Cooperation
and Development (OECD) and IFC. It was hosted by the Buenos Aires
Stock Exchange and the National Securities Commission of Argentina.