The most appropriate company vehicle for doing business in Mexico is the Sociedad Anónima for the following three reasons:

• the net separation between the shareholders’ equity and personal assets;

• the extreme flexibility of the corporate bylaws that enable shareholders to insert different types of agreements to handle any situation, such as the co-existence of several interest groups, establishing mechanisms to protect minority shareholders, establishing methods to solve deadlocks, establishing tag-alongand drag along mechanisms, including different types of shareholder rights and obligations and attributing specific powers of attorney to representatives;

• the possibility to incorporate the company with a very low initial capital.

The capital stock is subdivided into shares represented by registered certificates that grant equal rights to the respective holders, however, it is possible to agree on the issue of shares that attribute specific rights.

The main body of the company is represented by the shareholders meeting that can make any kind of decision. Shareholders, except in special cases, do not have the obligation to physically gather at a meeting and can be represented with simple powers of attorney limited to the approval of the points of the agenda, or can directly sign the respective meeting minutes.

In the Sociedad Anónima, unlike the Sociedad de Responsabilidad Limitada, it is mandatory to appoint an auditor.

The capital stock can be easily increased or reduced, with no special processes.

The Sociedad Anónima is the only kind of company that can be listed on the stock exchange.