World Bank2014-10-152014-10-152003-08https://hdl.handle.net/10986/20436This report assesses the corporate governance policy framework, enforcement and compliance practices in Colombia. The capital markets are small relative to the economy and trading volume is low equity trading totals about USD one million, as compared to USD one billion in fixed income trading. The corporate sector is largely owned and controlled by family groups and conglomerates. The challenge is to create an environment where medium-sized companies can raise capital in the market and help them make the transition from tightly-controlled family firms to public companies. While pension funds represent a large and rapidly growing source of funds, they are reluctant to invest in equities. It has been demonstrated across countries that capital market development correlates positively with the degree of shareholder protection and good corporate governance. Awareness of the importance of corporate governance issues is growing. Success stories of privatizations linked with good corporate governance highlight the importance of the issue. Colombia is an interesting example of the interplay between legal changes and voluntary initiatives based on the incentive to attract capital. It has put a minimum corporate governance disclosure regime in place for companies that wish to be eligible for pension fund investments. The report recommends (i) the adoption of a securities bill as proposed by the securities regulator supevalores; (ii) the adoption of International Accounting Standards (IAS) and International Standards on Auditing (ISA) and the creation of an independent audit oversight board; (iii) improved enforcement; (iii) enhanced monitoring of compliance with the code of good governance, for example by introducing a comply-or-explain requirement; and (iv) the creation of a director training organization.en-USCC BY 3.0 IGOACCESS TO INFORMATIONACCOUNTINGACCOUNTING STANDARDACCOUNTING STANDARDSACQUISITIONSANTI-TAKEOVER PROVISIONSARBITRAGEARBITRATIONAUDIT COMMITTEESAUDITOR INDEPENDENCEAUDITSBALANCE SHEETBANKSBENEFICIAL OWNERBENEFICIAL OWNERSBENEFICIARIESBENEFICIARYBLUE CHIPSBOARD MEETINGBOARD MEMBERSBOOK ENTRYBUSINESS JUDGMENT RULEBUY-BACKSCAPITAL EXPENDITURESCAPITAL INVESTMENTCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL MARKET LAWCAPITAL MARKETSCAPITAL STRUCTURESCASH FLOWCASH FLOW STATEMENTCENTRAL DEPOSITORIESCENTRAL DEPOSITORYCEOCHAIRMAN AND CEOCHAMBER OF COMMERCECIVIL LAWCLASS ACTIONCOLLECTIVECOMMERCIAL CODECOMMON LAWCOMMON · SHAREHOLDERSCOMPANYCOMPLIANCE OFFICERCONFIDENTIAL INFORMATIONCONFLICT OF INTERESTCONFLICTS OF INTERESTCONSUMER PRICE INDEXCONTROLLING SHAREHOLDERCONTROLLING SHAREHOLDERSCORPORATE AFFAIRSCORPORATE ASSETSCORPORATE GOVERNANCECORPORATE GOVERNANCE FRAMEWORKCORPORATE GOVERNANCE PRINCIPLECORPORATE GOVERNANCE PRINCIPLESCORPORATE GOVERNANCE STANDARDSCORPORATE PERFORMANCECORPORATIONCREDITORCREDITOR RIGHTSCREDITORSDEBTDEBTORSDERIVATIVEDERIVATIVE ACTIONDISCLOSURE REQUIREMENTSDISCLOSURE STANDARDSDISCLOSURE VIOLATIONSDIVIDENDDIVIDENDSDUE DILIGENCEDUTY OF LOYALTYECONOMIC DEVELOPMENTEMPLOYMENT CONTRACTSEQUITIESEQUITY INVESTMENTEQUITY TRADINGEX ANTEEXCHANGE RATEEXPENDITURESFAIR MARKET VALUEFAMILY FIRMSFIDUCIARY DUTIESFINANCIAL DISCLOSUREFINANCIAL INFORMATIONFINANCIAL INSTITUTIONSFINANCIAL STATEMENTSFIXED INCOMEFIXED INCOME TRADINGFOREIGN INVESTORSGLOBAL DEVELOPMENT FINANCEGOLDEN PARACHUTESGOOD CORPORATE GOVERNANCEGOOD GOVERNANCEGOVERNANCE ISSUESGOVERNANCE PRACTICESGOVERNANCE STANDARDSHOLDINGHOLDINGSILLIQUIDITYINCOME TRADINGINDEPENDENT AUDITINDEPENDENT DIRECTORINDEPENDENT DIRECTORSINDIVIDUALSINSIDER DEALINGSINSIDER TRADINGINSTITUTIONAL FRAMEWORKINSTITUTIONAL INVESTORSINSTRUMENTINSURANCEINSURANCE COMPANIESINTERNAL AUDITINTERNAL CONTROLINTERNAL CONTROLSINTERNATIONAL DEBATEINVESTIGATIONINVESTMENT CORPORATIONSIPOISSUANCELARGE SHAREHOLDERSLEGAL CHANGESLEGAL DUTIESLEGAL FRAMEWORKLEGAL PROVISIONLEGAL PROVISIONSLEGISLATIVE REFORMLIABILITYLIMITEDLIQUIDATIONMAJOR SHAREHOLDERSMAJORITY SHAREHOLDERSMANAGERSMANDATORY PENSION FUNDSMARKET ANALYSTSMARKET CAPITALIZATIONMARKET PARTICIPANTSMARKET REGULATORMERGERMERGERSMINISTRY OF FINANCEMINORITY INVESTORSMINORITY SHAREHOLDERMODEL CODENATIONSNUMBER OF SHAREHOLDERSOWNERSHIP CONCENTRATIONOWNERSHIP STRUCTUREPENSIONPENSION FUNDPENSION FUND INVESTMENTPENSION FUND INVESTMENTSPENSION FUNDSPORTFOLIOPRIVATIZATIONSPROPORTIONAL REPRESENTATIONPROTECTING MINORITY SHAREHOLDERSPROTECTION OF MINORITY SHAREHOLDERSPROXYPRUDENTIAL REGULATIONPUBLIC COMPANIESPUBLIC OFFERINGSREGULATORSREGULATORY BODIESREGULATORY FRAMEWORKRESERVESRETURNRETURNSRIGHTS OF SHAREHOLDERSRISK FACTORSRISK MANAGEMENTSAVINGSSECURITIESSECURITIES ISSUESSECURITIES MARKETSECURITIES REGULATORSETTLEMENTSHARE CAPITALSHARE OWNERSHIPSHAREHOLDERSHAREHOLDER ACTIVISMSHAREHOLDER ACTIVISTSHAREHOLDER AGREEMENTSSHAREHOLDER APPROVALSHAREHOLDER MEETINGSHAREHOLDER MEETINGSSHAREHOLDER PROTECTIONSHAREHOLDER PROTECTIONSSHAREHOLDER RIGHTSSHAREHOLDER VOTESHAREHOLDERSSHARES OF COMPANYSINGLE SHAREHOLDERSTAKEHOLDERSTAKEHOLDERSSTOCK COMPANYSTOCK EXCHANGESTOCK EXCHANGESSTOCK OPTIONSTAKEOVERTAXTAX EXEMPTIONSTENDER OFFERTRADINGTRADING SYSTEMSTRADING VOLUMETRANSACTIONTRANSFER RISKSTRANSPARENCYTURNOVERTURNOVER RATIOVALUATIONWITHDRAWALWORLD DEVELOPMENT INDICATORS10.1596/20436