Research Handbook on Shareholder Power
Show Less

Research Handbook on Shareholder Power

  • Research Handbooks in Corporate Law and Governance series

Edited by Jennifer G. Hill and Randall S. Thomas

Much of the history of corporate law has concerned itself not with shareholder power, but rather with its absence. Yet, as this Handbook shows, there have been major shifts in capital market structure that require a reassessment of the role and power of shareholders. This book provides a contemporary analysis of shareholder power and considers the regulatory consequences of changing ownership patterns around the world. Leading international scholars in corporate law, governance and financial economics address these central issues from a range of different perspectives including historical, contemporary, legal, economic, political and comparative.
Buy Book in Print
Show Summary Details

Chapter 22: Corporate control and governance after a decade from ‘Novo Mercado’: changes in ownership structures and shareholder power in Brazil

Érica Gorga

Extract

Brazilian capital markets have undergone fascinating developments in the past ten years. After centuries of state domination of capital markets regulation that was associated with poor market performance (Gorga 2006, 2009: 489–492; Levy 1977; Trubek 1971), BM & FBovespa, the main Brazilian stock exchange, finally took steps towards developing private regulation of the market at the beginning of 2000. It created three special listing segments – Level 1, Level 2 and Novo Mercado – with more stringent corporate governance requirements than the ones provided by Brazilian corporate law. A company’s voluntary adherence to any of these listing segments requires compliance with BM & FBovespa’s set of corporate governance practices for each one. Novo Mercado adopts the most stringent rules, followed by Level 2 and then Level 1. The pre-existing traditional market required no additional compliance beyond state law. Once compliance with better governance was voluntary, established companies listed in the traditional market could choose whether to migrate to the higher listing standards or to continue to be regulated by the existing system.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.