Sound corporate governance helps companies to operate as efficiently as possible in the interests of their shareholders. Across Europe, there are Corporate Governance Codes in place in each country. These approaches, and other issues, such as female board representation, are currently addressed in the EU.
The topics that are being discussed include:Boards
Board of directors: questions addressed refer to their effective functioning and ensuring they are composed of a mixed group of people, e.g. by enhancing gender diversity, a variety of professional backgrounds and skills as well as nationalities. Functioning of boards, namely in terms of availability and time commitment of directors are also under scrutiny as well as questions on risk management and directors' pay.Shareholders
How to enhance shareholders' involvement on corporate governance issues and encourage more of them to take an interest in sustainable returns and longer term performance, but also how to enhance the protection of minority shareholders. It also seeks to understand whether there is a need for shareholder identification, i.e. for a mechanism to allow issuers to see who their shareholders are, and for an improved framework for shareholder cooperation.Comply-or-Explain Principle
The 'comply or explain' principle forms the basis of the European code-based approach to corporate governance. Companies who don't comply with national corporate governance recommendations have to explain why they deviate from them. Possibly, explanations of deviations can be improved.Nasdaq works on Corporate Governance policy:
Baltic Institute of Corporate Governance 13th EU Corporate Governance Conference 8-9 October, 2013, Vilnius, Lithuania, Watch video interview