Cartica Management, LLC applauds Mexican Stock Exchange Recommendation that Issuers Extend Notice Periods for Shareholders Meetings

February 27, 2017

In the News

Cartica Management, LLC applauds Mexican Stock Exchange Recommendation that Issuers Extend Notice Periods for Shareholders Meetings

WASHINGTON D.C., February 27, 2017 – Cartica Management, LLC (“Cartica”), a leading global alternative asset management firm focused on active ownership in emerging markets equities, today expressed its support of the actions taken by the Mexican Stock Exchange (“BMV”) on February 21 recommending that all issuers provide more than the statutory minimum 15-day notice for annual meetings of shareholders.  The BMV’s communication noted that the recommendation was made after consultation with the National Banking and Securities Commission (“CNBV”) and cited Cartica’s request that issuers make notices and all supporting materials available electronically at least 30 days in advance of any shareholders’ meeting.

“Cartica thanks the BMV and the CNBV for their responsiveness to investor concerns about how the short notice periods practiced by many of the most important Mexican issuers have been disenfranchising minority shareholders.  We hope that issuers will take the BMV’s recommendation to heart and that an overwhelming percentage of Mexican issuers this proxy season will provide their shareholders with at least 30 days’ notice of their annual general meetings at that same time that they provide all the supporting materials electronically. If this happens, it can only be positive for the market, for investors and ultimately for the companies themselves,” said Mike Lubrano, Managing Director, Corporate Governance and Sustainability, at Cartica.

On January 30, Cartica issued a release making public its formal request to the CNBV and the BMV to require all public issuers in Mexico: (1) to extend the period for advance notice of shareholders’ meetings to at least 30 days; and (2) to rescind charter provisions that require Board approval for a shareholder to acquire 10% of the voting shares and exercise its statutory right to nominate a director to the Board.

Other major institutional investors, including Aberdeen Asset Management, Franklin Templeton Investments, CalPERS and CalSTRS, are actively supporting Cartica’s efforts.

Cartica and these investors will continue to advocate for legal and regulatory measures to require listed companies to rescind charter provisions that require Board or majority shareholder approval before a minority shareholder can hold 10% of the voting shares and exercise its statutory right to elect a director to the Board.

“The drafters of Mexico’s Securities Markets Law were wise to empower minority shareholders to elect a director to Boards that are typically dominated by the nominees of the controller. Charter provisions that attempt to take away this counterweight to majority shareholder domination are illegal and the regulator and the exchange should join investors in insisting that they be removed from company charters,” said Mr. Lubrano.

About Cartica Management, LLC:

Cartica Management, LLC (www.cartica.com) is a leading global alternative asset management firm focused on active ownership of emerging markets companies. The firm seeks to unlock long-term growth in its investments by partnering with management teams, Boards, and shareholders to drive positive governance and operational changes. Cartica was founded in 2008 by former executives of International Finance Corporation (IFC), a member of the World Bank Group, and is headquartered in Washington D.C. As of January 1, 2017, the firm has $2.4 billion of assets under management.

U.S. Media Contacts:

Nadia Damouni / Kevin Infante
Edelman
+1 (917) 344-4771 / +1 (212) 729-2442
Nadia.Damouni@Edelman.com/ Kevin.Infante@Edelman.com

Mexico Media Contacts:

Tania Gonzalez / Nadya Ramirez
Edelman
+52 55 5350 1505 / +52 55 5350 1500 ext. 5961
Tania.Gonzalez@Edelman.com / Nadya.Ramirez@Edelman.com

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