ABSTRACT
This chapter explores the development of corporate governance in Mexico which started with the 1934 Act (“Ley General de Sociedades Mercantiles” in Spanish). It applies a regulation approach to explain the general status of the legal framework and how some social preconditions have not been complied with to achieve best practices in Mexico’s mercantile corporations. Arguably, Mexican corporate governance practices are inhibited due to heavy reliance on codes of best practices, with limited appreciation of local institutional peculiarities that can affect regulation.
