The Colombian Stock Exchange wants to encourage private companies, both domestic and foreign firms operating in the country, to implement the Good Governance Code, particularly in view of our current trade situation, with the advent of the Free Trade Agreement. Access to new markets and the possibility of growth in services and investments demand policies that guarantee transparency.

“Promigas applies the Good Corporate Governance Code more out of conviction than because of any legal provision,” said Antonio Celia, the CEO of Promigas.
 
In addition to adopting the code five years ago, Promigas has taken other action as well.  For example, its Audit and Good Corporate Governance Board was established even before such instances were required by law.

Thanks to these years of effort, Promigas made dramatic headway in this area during 2006. The following are some of the aspects highlighted by the Colombian Stock Exchange with respect to exercise of good corporate practices.

• Promigas has a great many guidelines in its by-laws and in its good governance code with respect to formal or regular practices.
• Self-regulation by the Board of Directors in contracting parties related to the administrators helps Promigas, as an issuer of securities, to achieve a high level in terms of corporate governance practices.
• Also applauded was the attention shown to interest groups and the way they are handled, with considerable emphasis on social responsibility.  In this regard, Promigas complies with all the parameters evaluated in the study.
• The company’s ownership structure is horizontal and can be consulted easily. This facilitates scrutiny by potential investors.
• In Colombia, by law, a special shareholders meeting may be called by shareholders representing no less than 25% of company equity.   At Promigas, the proportion is 10%. This measure offers minority shareholders an opportunity for increased participation.

On Corporate Governance

Corporate governance policies have been applied the world over since the crash on the New York Stock Exchange. Transparency is a determining factor when it comes to promoting investment.  Consequently, when extending credit, banks worldwide give priority to companies that are known for good corporate governance.
Companies with good governance codes are more likely to attract capital. They also minimize investment risks, do a better job of protecting the rights of their investors and interest groups, and manage to reduce operating costs in decision-making processes.  As a result, they are far more competitive.