 Bismillah Al Rahman Al Raheem and welcome back everyone to the Corporate Governance module. Today we are going to be talking about a model which is called the control model or the Latin American model because it is predominantly found and exhibited within the Latin American countries which basically is South America. Now ladies and gentlemen when we talk about South America then many times in our mind we think that they are dominated by mafiosos, by cartels and by vested interest groups. Now that is true unfortunately but over the decades things have improved and the governance structure has also drastically, relatively improved. However when we are talking about the control model or the Latin American model then it has its own unique features and also the fact that it revolves around the limited number of stakeholders and the limited number of shareholders and basically caters to the needs, requirements, interests of a very small vested interest group of the big shareholders. Now when we are talking about this Latin American model then basically is based upon concentrated shareholding pattern, heavy reliance on family, bank and public finance by companies. Primary capital markets are not much developed and limited external holding hence the chance of hostile take holders are limited. So the limited external holding basically ensures that there is lesser chance of takeovers by other organizations or by other stakeholders and therefore ladies and gentlemen what we see is that in Latin America wealth is concentrated in the hands of a few limited families or a few corporations and these corporations or families basically control the economies of the whole continent and not only of countries but of the whole continent. Now as a by-product or as a consequence of this limited shareholding what we see is that the corporate governance framework is focused and concentrated to watch the interests of these few families or large corporations or financial institutions which basically hold the majority stake holding within an organization and that is why we see that in a Latin American countries there is hardly any takeover because the majority control is in the hands of a few and no one can buy them out even through their very limited and weak stock exchanges and the capital markets are also not that well developed to ensure that they can be takeover or they can be a hostile takeover of management or we could see that there is a broader shareholding within the different segments and levels of society and that is the unique feature of this control model or the Latin American model which we are talking about. Similarly what we see is that the corporate control which is done at the governance level is very different from the Anglo-Saxon model. The unique elements of the control model basically distinguish it from the other models is the broad composition and the shareholder rights. The minority interest protection is inadequate in the control model just like I was earlier mentioning and we see that the minority shareholders hardly have any rights and if they have those rights they are not protected and they are not watched by the regulatory frameworks or the regulatory institutions and therefore again there is this domination of the corporation by only a few players which is eschewed and also to a certain level is unfair because then the wealth of the economy goes into a concentrated family holding which has many negative consequences for the whole economy at large and many a times also for the corporation because the management is basically given a dictation by the corporation and many a times these corporations are also poised to be front end companies to basically launder black money and also to launder the drug money and that tends to create a lot of complications and implications for international trade, international economy and also international participation in local governance and in local corporations. Another thing that we see is that unlike the Anglo-Saxon model we see that the board is basically concentrated with insiders very few outsiders in the board and the core shareholders are given a lot of incentives and many a times they are over incentivized while the smaller shareholders do not have those incentives and therefore are at a major disadvantage. The regulatory framework is also very weak just like I was mentioning earlier and can also be found in some Asian countries whereby we basically see that the control model is used and applied. So, ladies and gentlemen coming to the conclusion what we see is that even in the context of disclosure which is a very important element of corporate governance across the world but in the control model and in the Latin American model there are many deficiencies in it and most of the information is only available to the few shareholders while the general information which is available to the other shareholders is only unlimited to capital structure data, financial data, list of major shareholders and dividend policy while the rest is all dominated by the major shareholders and in that case we see that it is controlled by those few families which tend to hold on to power, authority and information and therefore put the other shareholders at a great disadvantage and that is the very essence of the Latin American model. Thank you so much ladies and gentlemen.