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Chile - Report on the Observance of Standards and Codes (ROSC) : corporate governance country assessment (English)

Chile's equity market is fairly large and successful. The market capitalization of the 249 listed firms represented 89 percent of GDP at year-end, 2001. Corporate ownership is concentrated and pyramid structures are common. Business groups/conglomerates are the predominant corporate form. Institutional investors, especially pension funds, are active equity investors. The Securities Market Law and the Corporation Law form the legal framework governing the capital markets. The securities market is regulated by the Superintendence of Securities and Insurance (SVS). Overall, Chile scores well on the assessment on compliance with the OECD Principles, scoring "Observed" or "Largely Observed" for 14 of 23 Principles; no Principle is deemed "Not Observed." The policy recommendations may be grouped under three broad categories: legislative reform, institutional strengthening and voluntary/private initiatives. The report recommends further amending Corporation Law and Securities Market Law to increase transparency for investors; having more transparency in and accountability of the SVS; increasing resources for the SVS to strengthen its ability to conduct market surveillance; and preparing a road map to improve the general enforcement of investor property rights. Finally, the report proposes creating an Institute of Directors to provide training for supervisory board members, disseminate best practice, and promote dialogue between the public and private sectors.


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  • Document Type

    Corporate Governance Assessment (ROSC)

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    Latin America & Caribbean,

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  • Doc Name

    Chile - Report on the Observance of Standards and Codes (ROSC) : corporate governance country assessment

  • Keywords

    Insolvency and Creditor Rights;related party transactions;expropriation of minority shareholder;voluntary association;book value per share;enforcement of property right;protection of minority shareholder;real time gross settlement;annual report to parliament;Sale and Purchase Agreement;legal and regulatory framework;financial statement;corporate governance framework;voting right;classes of shares;right of shareholder;clearance and settlement;international good practice;insider trading;access to information;legal framework governing;duty of loyalty;fixed capital formation;quality assurance arrangements;Merger and Acquisitions;financial and operating;cash flow statement;interim financial statements;world development indicator;high quality standard;defined contribution pension;breach of duty;right to information;conflicts of interest;local institutional investors;risk rating agencies;corporate governance policy;interests of stakeholder;financial reporting system;average market price;duty of care;law;Voting shares;corporation law;beneficial owner;Electronic Payment;material issues;stock option;principal risk;equitable treatment;electronic surveillance;anecdotal evidence;corporate control;general shareholder;tender offer;market capitalization;civil court;capital structure;investor relation;shareholder meeting;security market;shareholder vote;pyramid structures;road map;large shareholder;stakeholder right;Share Class;disclosure standard;outstanding share;fiduciary duty;insider dealing;corporate asset;shareholder right;connected party;independent director;holding company;public company;shareholder agreement;internal control;audit standard;administrative sanction;bank risk;market participant;private initiative;equity market;legislative reform;cumulative voting;institutional framework;institutional strengthening;director independence;preferential right;consulting fees;corporate decision;audit quality;board seat;international investor;applicable law;independent audit;criminal offense;company control;continuous basis;restructuring plan;internal auditor;working day;strike price;corporate structure;auditing profession;shareholder approval;regional market;national market;Corporate Shares;qualification requirement;consulting contract;company share;effective monitoring;insider abuse;expert opinion;share ownership;professional experience;transfer price;equity holding;proper audit;supervisory body;Equal Opportunity;daily price;illegal activities;free float;asset portfolio;multiple sources;auditing process;supervisory capacity;corporate scandal;legal compliance;labor legislation;governance practice;stock market;voluntary saving;financial situation;public offer;business school;strategic guidance;insurance policy;domestic equity;audit company;transparency principle;administrative function;material matters;market surveillance;governing body;supervisory board;good faith;firm size;protection agency;financial market;monitor compliance;voting stock;supervisory entity;company executive;majority shareholder;private company;securities issue;special provision;potential conflicts;succession planning;court process;capital expenditure;corporate performance;performance objective;annual budget;stakeholder participation;prices fall;court system;corporate affair;corporate sector;equity investor;foreign investor;independent board;enforcement power;independent judgment;exogenous obstacle;electronic system;market condition;information requirement;internal procedure;criminal court;insurance companies;labor court;timely access;family ties;transfer pricing;scarce resource;potential fraud;board meeting;minority interest;judiciary system;utility company;shareholder dividend;employee right;sale price;civil law;investment fund;allocation process;Preferred Shares;stock exchange;proxy vote;arbitration mechanism;capital issues;international consensus;accounting treatment;international debate;depositary receipt;foreign market;company performance;minority investor



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Chile - Report on the Observance of Standards and Codes (ROSC) : corporate governance country assessment (English). Washington, D.C. : World Bank Group.