Mexican Investment Board

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Mexican Investment Board

FIFTH TITLE

NEUTRAL INVESTMENT

CHAPTER I
THE CONCEPT OF NEUTRAL INVESTMENT

ARTICLE 18.- Neutral investment is the investment in Mexican corporations or in trusts authorized under this Title and shall not be computed to determine the percentage of foreign investment in the capital stock of Mexican corporations.

CHAPTER II
NEUTRAL INVESTMENT REPRESENTED BY INSTRUMENTS ISSUED
BY TRUSTEE BANKS

ARTICLE 19.- The Secretariat may authorize fiduciary institutions to issue neutral investment instruments that shall solely grant, with respect to companies, pecuniary rights to their holders, and, as applicable, limited corporate rights, but without granting their holders voting rights in Shareholders Meetings.
The Secretariat will have a maximum period of thirty-five business days following the next day of the filing application to grant or deny the authorization applied. Concluded the aforesaid period without emitted approval, the application is deemed to have been granted.

CHAPTER III
NEUTRAL INVESTMENT REPRESENTED BY SPECIAL SERIES OF SHARES

ARTICLE 20.- Investment in shares without voting rights or with limited corporate rights shall be deemed neutral, provided the authorization from The Secretariat, and when applicable, from the National Banking and Securities Commission.

The Secretariat will have a maximum period of thirty-five business days following the next day of the filing date of the corresponding application to grant or deny the authorization applied. Concluded the aforesaid period without emitted approval, the application is deemed to have been granted.

CHAPTER IV
NEUTRAL INVESTMENT IN HOLDING COMPANIES OF FINANCIAL GROUPS, MULTIPLE BANKING INSTITUTIONS AND BROKERAGE OFFICES

ARTICLE 21.- Derogated.

CHAPTER V
NEUTRAL INVESTMENT MADE BY INTERNATIONAL
FINANCIAL DEVELOPMENT INSTITUTIONS

ARTICLE 22.- The Commission may resolve on neutral investment international financial development institutions intended to obtain in the capital stock of corporations, in accordance with the terms and conditions set forth for such purpose in the regulations hereof.