General information on corporate governance

Definition of corporate governance

Argentina's legal and regulatory framework does not provide a definition of corporate governance. Decree No. 677/2001 – the backbone of the corporate governance regime enacted on May 22, 2001 – refers to the relevance of adequate corporate governance practices. The decree also outlines the need of enacting a regulatory framework establishing principles such as “full disclosure,” “transparency,” “efficiency,” “investors' protection,” “equal treatment among investors,” and “protection of the entities and financial intermediaries' stability.”

It goes on to characterize “corporate governance practices” as principles, and qualifies such practices as “good” or “adequate.” Pursuing such good practices, the decree sets forth a series of principles, duties, and rules – to be explained in detail below – that are considered to fit the required standard.