The Investment Promotion Corporation (IPC) represents a modern and efficient investment vehicle in Mexico very useful for constructors, real estate developers, restaurant and hotel owners.
In fact, this corporation under its initials (SAPI in Spanish) with variable capital, is different from the common corporations because it is regulated by the Stock Market Law, which allows it (not obligated) to be transformed into a Stock Investment Promotion Corporation, or a Stock Corporation with the purpose to participate on the Stock Market.
In such way that by not being obligated to such transformation the IPC and while it doesn´t record values at the Value National Registry to trade with them, this corporation will not be subject to the National Securities Commission. The Stock Market Law, allows it to administrate as a traditional corporation ruled by the General Law for Mercantile Corporations or adopt the administration scheme of a Stock Corporation with a corporate governance, solid, professional and trustful to third parties.
Corporate governance has such importance that the Entrepreneur Coordination Counsel in Mexico, issued the Best Principles and Practices for Corporate Governance with the intention to promote among corporations to make corporate decisions and no longer promoting unilateral or familiar decision makers as on other corporations, which generated certainty and security before investors, commercial partners and its own shareholders.
As for the above referred, Investment Promotion Corporation, under its corporate governance and as per the Stock Market Law and the Best Practices Regulations outstands for:
Specialized and independent counsels.
Equal treatment to shareholders and minorities protection.
Transparency on administration and information.
Prevention of illegal operations and conflicts of interest.
Pull investment through the issuance of different classes of shares with patrimonial rights, and no corporate rights, nor right to vote.
Issue shares with corporate rights and not patrimonial rights.
Restriction to property or rights over certain classes of shares.
Conflict resolution mechanisms.
Possibility to use highly efficient contractual mechanisms to pull investment, drag along, tag along, among others, in order to gather capital with different economic return according to the investment round.
Trustful vigilance commitees.