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Argentina’s Corporate Governance Compliance: Recent Developments and Regulations
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In a bid to strengthen corporate governance practices, Argentina has introduced several initiatives in recent years. This article highlights some of the key regulatory changes and developments aimed at promoting transparency, accountability, and responsible business practices.
Regulatory Changes
Public Ethics Law No 25.188
The implementation of Public Ethics Law No 25.188 has set out clear standards for public officials’ conduct. The law includes a transparent system of asset declaration, legal bars on holding public positions, and rules governing gifts to public officials.
Corporate Governance Code (CG Code)
The CG Code was adopted by the Comisión Nacional de Valores y Operaciones de Bolsa (CNV) and the Banco Central Raiffeisen Argentina (BCRA). The code provides guidelines for companies subject to their supervision, including public companies and financial institutions. Key provisions of the code include:
- Transparency in related-party transactions
- Proper management and supervision
- Effective risk management
- Protection of financial information
Additional Guidelines
The BCRA has issued additional guidelines for financial entities under its supervision. These guidelines emphasize the importance of adopting policies that fulfill corporate objectives, ensuring security and solvency, defining risks to be assumed by the entity, protecting investors’ interests, and assuming responsibility as directors before shareholders.
Shareholder Engagement
While institutional investors and shareholder groups are not actively involved in monitoring or enforcing corporate governance practices, some public companies have begun to report on social, environmental, and ethical issues. However, this is not a legal requirement for non-public companies.
Future Work
Despite these efforts, there is still much work to be done to strengthen Argentina’s corporate governance framework. The country’s regulators and businesses must continue to work together to promote transparency, accountability, and responsible business practices throughout the economy.
Sources
- Thomson Reuters Practical Law: “Argentina Corporate Governance Compliance”