Press Release: Corporate governance: European Forum clarifies ‘comply or explain’ principle and issues annual report

The European Corporate Governance Forum, which examines best practices in Member States in the field of corporate governance, on 6 March 2006 issued a public statement clarifying the 'comply or explain' principle, which obliges companies to justify any deviation from corporate governance codes. The Forum also issued a report detailing its activities in 2005 and its plans for future activities, such as an exchange with bodies monitoring the application of national corporate governance codes and further work to examine the 'one share one vote' concept.