BUSINESS ORGANIZATION -PROCEDURE FOR ORGANIZING A A MINING COMPANY The Mexicanization law provides that all Mexican nationals and companies that are organ-ized in accordance with Mexican law and that have the majority of their capital subscribed by Mexican nationals may obtain mining concessions. Moreover, Article 76 of the law provides that special concessions in national mining reserves may be issued to companies whose by-laws stipulate that one series of shares representing at least 66 percent of corpor-ate capital may only be subscribed by Mexicans and, further, that those shares may not be transmitted to foreigners. Although ordinary mining concessions in Mexico may be granted to either Mexican individuals or to companies that have at least 51 percent Mexican equity and special con-cessions may be granted to those having at least 66 percent Mexican equity, the high invest-ment cost and long period of readjustment have led to the general use of Stock Corporations for mining operations. Although it is legally possible to establish six different types of companies or business organizations, the Stock Corporation is most generally used at present. The ownership regulations applying to Stock Corporations require that, if the shares issued are exclusively common or ordinary, at least 51 percent (ordinary concession) or 66 percent (special concession) must be Series A shares, which are designated for Mexican subscription, and 49 percent or 34 percent (as the case may be) may be Series B shares, which are designated for general subscription. Series A shares must be nominative that is, registered and may only be purchased by Mexican nationals or by Mexican companies whose charters forbid the sale of stock to foreign nationals. A Mexican company is defined as one that fulfills the requisites estab-lished in Articles 14 and 76 of the law as well as the regulations that are registered in the list of Mexican partners and stockholders of mining companies. All shares of the same series are to be of equal value. Thus, shares subscribed by Mexican nationals or Mexican companies or institutions cannot have fewer rights than the shares that may be acquired by foreigners. Similarly, in the distribution of profits, there can be no preference for the Series B shares over the Series A shares. If the management of a company is assigned to a single individual, that person must be a Mexican. If the company is administered by a board of directors, the Mexican share- 22