Comparative Study of Corporate Governance Codes relevant to the European Union and its Member States

Wednesday
12:12:19
March
27 2002

Comparative Study of Corporate Governance Codes relevant to the European Union and its Member States

View 160.2K

word 517 read time 2 minutes, 35 Seconds

The Commission Services are pleased to present the comparative study on corporate governance codes relevant to the EU and its Member States. The study has been undertaken by the international law firm Weil, Gotshal & Manges LLP, in consultation with the European Association of Securities Dealers and the European Corporate Governance Network.

In its Financial Services Action Plan published in May 1999, the Commission identified issues and actions to be considered to achieve deep and liquid European capital markets that better answer the needs of issuers and investors.

One of the issues identified was the need to improve the corporate governance framework in the European Union. A series of corporate governance codes have indeed been adopted over the past decade with the aim of better protecting the interests of shareholders and/or stakeholders. Although these codes seemed to have some basic principles in common, the FSAP recognised that they spring from long-standing legal and socio-economic national traditions.

Differences in corporate governance arrangements may create unnecessary uncertainty for both issuers (a company deciding to collect capital in different European countries might have to apply different codes) and investors (investors deciding to be active on different markets in the European Union might not benefit from the same rights everywhere). Based on these observations, the FASP announced that the Commission would launch a review of existing codes of corporate governance with a view to identifying any legal or administrative barriers which could frustrate the development of a single EU financial market.

The study identifies the various corporate governance codes which may affect the way companies are directed and controlled within the European Union. It performs a detailed comparison of the corporate governance rules contained in these codes and presents a synthesis of the main lines of convergence and divergence contained in the codes. It makes an analysis of the extent to which enforcement of these provisions has been organised and presents information about the expected developments in the area of corporate governance codes within the European Union.

The study will be submitted to the High Level Group of Company Law Experts, appointed by Commissioner Bolkestein last September, with the aim of providing the Commission with recommendations on how to set up a modern framework for company law (including corporate governance) in the European Union. The Group will use the study as background research and discussion material. The Group is planning to organise wide consultations in April and May, and is expected to deliver its final report in the summer 2002.

The Commission Services believe that this comparative study may be of interest to a wide range of parties, including issuers, investors, stakeholders, and regulators. We hope it will further stimulate the debate in Member States, at EU level and internationally. We are therefore pleased to make the study available on our website. Please note that although the study was commissioned by the Directorate-General Internal Market, it does not express the Commission's official view. The consultants remain responsible for the facts and the views set out in the report.

Source by europeanunion


LSNN is an independent publisher that relies on reader support. We disclose the reality of the facts, after careful observations of the contents rigorously taken from direct sources. LSNN is the longest-lived portal in the world, thanks to the commitment we dedicate to the promotion of authors and the value given to important topics such as ideas, human rights, art, creativity, the environment, entertainment, Welfare, Minori, on the side of freedom of expression in the world «make us a team» and we want you to know that you are precious!

Dissemination* is the key to our success, and we've been doing it well since 1999. Transparent communication and targeted action have been the pillars of our success. Effective communication, action aimed at exclusive promotion, has made artists, ideas and important projects take off. Our commitment to maintain LSNN is enormous and your contribution is crucial, to continue growing together as a true team. Exclusive and valuable contents are our daily bread. Let us know you are with us! This is the wallet to contribute.

*Dissemination is the process of making scientific and technical information accessible to a non-specialist public. This can come through various forms, such as books, articles, lectures, television programs and science shows.


Similar Articles / Comparat...er States
from:
by:
01 gen 1970