Brussels unveils corporate governance plans

The European Commission launched on the 5 April 2011 a public consultation that addressed the ways in which corporate governance of European companies could be improved.

Corporate governance is traditionally defined as the system by which companies are managed and controlled. The consultation covered a number of issues such as how to improve the diversity and functioning of the boards of directors and the monitoring and enforcement of existing national corporate governance codes, and how to enhance the engagement of shareholders. The deadline for submitting contributions in response to the consultation was 22 July 2011.

One of the lessons of the financial crisis was that corporate governance, until now usually based on self-regulation, was not as effective as it could have been. It was important that companies were better run. If companies were better run, not only is a future crisis less likely but they should also be more competitive.

EurActiv, 6.4.11: EU floats ideas to make companies more ethical, diverse http://www.euractiv.com/albania/corporate-governance-green-paper-seeks-women-tighter-codes-news-503812

ESO: Background Information: Bonino: Forget quotas, punish gender discrimination http://www.europeansources.info/record/bonino-forget-quotas-punish-gender-discrimination/

European Commission: Press Release: IP/11/404: Corporate governance framework for European companies: what needs to be improved? http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/404&format=PDF&aged=0&language=EN&guiLanguage=en

European Commission: DG Internal Market and Services: Company law: Modernisation: Corporate Governance Framework http://ec.europa.eu/internal_market/company/modern/corporate-governance-framework_en.htm

ESO: Background information: Corporate governance divides opinion http://www.europeansources.info/record/corporate-governance-divides-opinion/

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