Law Commons^™

Shareholders’ Agreements In Public Corporations In Chile: What Are We Missing Out?, Gonzalo Islas, Osvaldo Lagos, Iván Cerda

University of Miami Inter-American Law Review

Shareholders’ agreements are quite common in many jurisdictions. Theory and empirical evidence suggest that they may have a positive or a negative impact on corporate governance structures depending on companies’ characteristics and on the goals that these contracts pursue. Shareholders’ agreements may be used as Control Enhancement Mechanisms (CEM) allowing controllers to circumvent rules that favor minority investors. However, comparing to other CEM, in many countries information regarding them is scarce. Is it necessary that shareholders’ agreements in public corporations be fully informed?

We examine the case of Chile (a country that only requires to inform that a shareholder agreement …