Shareholder's Rights

The new Stock Market Law provides minority shareholders with more rights, and the regulatory framework was improved in order to guarantee the rights of minority shareholders. The articles concerning minority shareholders' rights in the New Stock Market Law are number 50 and 51.

Article 50.- Shareholders with complete, limited or restricted voting rights, for every 10% ownership, individually or collectively, of the company's shareholders equity, will be entitled to the following rights:

I. Assign and revoke one board member during the General Shareholder's Assembly. This designation can only be revoked by the rest of the shareholders when the appointment of all the board members is revoked as well, in which case the board members that are replaced persons cannot be nominated during the following twelve months.

II. Require the Chairman of the Board or the committees in charge of corporate governance or audit practices to convene a General Shareholders Meeting without considering the percentage indicated in article 184 of the General Law of Mercantile Societies.

III. Request that the voting procedure be postponed, only once and for three natural days without a new roll call, of any matter that they consider having insufficient information. In this respect, the percentage indicated in article 199 of the General Law of Mercantile Societies is not applicable.

The shareholders of the variable portion of a company's equity will not have the retirement rights referred to by article 220 of the General Law of Mercantile Societies.

Article 51.- Shareholders - including those with limited or restricted voting rights - which individually or jointly hold twenty percent or more of stockholder's equity, will be able to legally oppose the resolutions of the General Assemblies in which they have voting rights. The percentages referred in article 201 of the General Law of Mercantile Societies will not apply in these cases.