Posts Tagged 'CAM'

Why is the Market Arbitration Panel (CAM – Câmara de Arbitragem do Mercado), created in 2001 to resolve shareholder/company conflicts, never used?

by Yuki Yokoi, for Capital Aberto Magazine, September 2009.

Created in 2001 by the Bovespa within the context of special governance tiers, the Market Arbitration Panel (CAM) promised to be the way to fairer, more agile resolution of conflicts between controllers and minority shareholders. Years have passed, IPOs made a comeback in 2004, and the Panel has never been engaged. Not even the entry of dozens of companies into the capital market has promoted the use of this specialized jury. If the Panel was so important, then why have no investors used it to this date?

A first possible answer is tied to the special governance tiers themselves. Their principles and rules may have been effective to the point of avoiding litigation-generating conflicts. “Since the panel was created, how many litigations appeared and didn’t engage it? I am not aware of any”, affirms Roberto Teixeira da Costa, CAM chairman. But there are other possibilities: does not the panel’s disuse reveal that investors are submissive and prefer to sell their shares rather than start a fight? “My feeling is no”, states Costa. “I see that shareholders gather together when a takeover takes place, they fight for their conversion rates. I don’t see lethargy.”

Calixto Salomão Filho, CAM vice-chairman and member of the Brazil-Canada Arbitration Panel, one of the most active in Brazil, observes that although the CAM has not been engaged, it has been remembered by the market. He remembers an episode that he analyzed — at the Panel, before a procedure is installed and the arbiters are appointed, the case’s suitability for arbitration must be analyzed by the entity’s chairman or vice-chairman. On this occasion, the party engaged by a minority shareholder was not automatically subject to the CAM (as is the case of companies listed on the Novo Mercado, Nível 2 or Bovespa Mais tiers) and did not voluntarily agree to resolve the matter through the Panel. These circumstances led the case to be considered unsuitable for arbitration…(continue reading)

Women still face a steep climb to the top table

by Ruth Sunderland for the Guardian, August 23, 2009.

Women still face a steep climb to the top table.

Research commissioned by the Observer has revealed that UK boardrooms are still overwhelmingly male-dominated, despite the fact that more than nine out of 10 companies claim to have an equal opportunities policy in place.

Women occupy only 242 out of 2,742 seats on the boards of FTSE 350 companies, according to a study by The Co-operative Asset Management as part of our Good Companies Guide series of reports into ethical and socially responsible practice in corporate Britain.

More than 130 companies out of those surveyed had an all-male board and the vast majority of female directorships are non-executive. Women hold only 34 executive board seats out of a possible 970.

As a result of this work, Co-operative intends in future to consider gender and diversity when it is assessing companies from an ethical, social and governance perspective.

John Reizenstein, managing director of Co-operative Asset Management, said: “It’s a commonplace that women and minorities ought to be better represented in boards and other top positions. But does it make good business sense? Our report shows that leading UK plcs believe an inclusive, progressive approach brings real benefits, but also shows that too many companies still appear to pay the issue lip service. We think organisations which foster diversity at the top have an advantage over those which don’t.”…(continue reading)


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