Sociedad Anónima Bursátil (Publicly Held Company): Understanding Companies in the United States

The Department of Law presented the book La Sociedad Anónima Bursátil (The Publicly Held Company) by Jorge Leonardo González García. The presenters, Jorge E. Familiar Calderón and Jesús de la Fuente Rodríguez, talked about the extensive practice of comparative law dealt with in the book, as it addresses the process of placement of equity securities in Mexico, the United States and Spain.

Publicly Held Company.
Publicly Held Company. PHOTO: ITAM

In addition, the publication sets forth the characteristics of the different types of mercantile companies that exist in the United States, as well as the rules that apply to publicly held companies, and presents the first antecedents of this social type, whose historical origin dates back to the first companies of the world such as the one created for investments in Holland, the Dutch East India Company, and that later was created in the colonies in the United States called the West Indies. At that time, companies that accumulated capital were constituted only by mandate of the king.

The presentation also discussed the importance of corporate governance within the company, but also outside it, and the great responsibility of the Board of Directors, the highest body of the company, which performs extensive functions in the Publicly Held Company, since this body is the executor of the established strategy. In order for the organization to function properly and its benefits be maximized, the interests of the administrators must be aligned with those of the investors. Occasionally, additional benefits are granted to the administrators to reduce the operating costs and in this way maximize the profits of the company.



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