Sergio Galvis Authors Article on Shareholder Activism Issues Relevant for Latin American Companies in Review of Securities and Commodities Regulation

July 15, 2015

On July 15, the Review of Securities and Commodities Regulation published an article by Mr. Galvis titled “Latin America: Lessons on Shareholder Activism From a U.S. Perspective.” In the article, Mr. Galvis discusses several different ways in which shareholder activism may manifest in Latin America as a consequence of a number of unique features of Latin American companies and the emergence of trends familiar from the emergence of shareholder activism in the United States. These include, for example, the prevalence of controlling shareholder blocks centered around family or other affiliations, as compared to a widely dispersed stockholder base in the United States, or the rapid rise of privately managed pension funds and mutual funds as the predominant minority investors in Latin American companies, similar to the rise of institutional investors in the United States. Mr. Galvis also describes several lessons from the experience in the United States to help Latin American companies prepare a response plan. “At the end of the day, advance preparation and analysis are critical to success,” said Mr. Galvis. Ms. Haley and Mr. Argentieri provided invaluable assistance in the preparation of the article.