Report on the Observance of Standards and Codes : Corporate Governance Country Assessment, Panama
This report provides an assessment of the corporate governance policy framework and enforcement and compliance practices in Panama. Much progress has been made since the drafting of the new Securities and Banking Laws in the late 1990s. The major i...
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| Format: | Corporate Governance Assessment (ROSC) |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/06/6582362/panama-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/14460 |
| Summary: | This report provides an assessment of
the corporate governance policy framework and enforcement
and compliance practices in Panama. Much progress has been
made since the drafting of the new Securities and Banking
Laws in the late 1990s. The major issues are driven by the
preponderance of banks. Given abundant debt financing, there
is little need for equity financing. In addition,
institutional investors are largely absent from the equity
market. The main legislation concerning listed companies is
based on US laws and is sophisticated, though poorly
enforced. The report recommends: (1) a sufficient level of
disclosure in practice, to enable the identification of
beneficial owners and their exact stakes, in the annual
report; (2) simplified shareholder redress, including a more
active role for the securities regulator, so as to enable
shareholders to challenge corporate decisions; (3) the
creation of an effective audit oversight mechanism; (4) the
re-introduction of the regulation on proxy solicitation,
requiring the provision of sufficient information for
shareholders to make informed voting decisions; (5)
mandatory audit committees for all listed companies; (6)
clearer fiduciary duties and liabilities of directors, and
(7) the availability of relevant and useful training for
board members. The report also proposes strengthening the
securities regulator's ability to issue and enforce
regulations on listed firms, their boards and shareholders
and stricter monitoring of the quality of disclosure. |
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