February 1, 2001
Chile's long-awaited shareholders' rights bill was signed into law by President Ricardo Lagos in December, setting a framework for investor protection that Chilean officials claim is among the world's best.
After three years of debate and successive drafts, the new law governing public tender offers, known as OPA after its initials in Spanish, promises to end the sort of sweetheart takeover deals between multinationals and local controlling shareholder groups that have often left minority investors holding severely depreciated stock.
Mark Mobius, president of Templeton Emerging Markets, says the new legislation is "headed down the right track," despite controversial loopholes t
Chile's new corporate governance law offers a regional blueprint for protecting minority shareholder rights. But a controversial provision gives companies three years to avoid the law?s real teeth.