The Forum concluded that an appropriate balance has to be found between managerial entrepreneurship and shareholder control. It considered the facilitation of the cross-border exercise of shareholders’ voting rights. It equally considered the area of internal control and risk management which aims at ensuring that companies manage their risks efficiently and safeguard shareholders’ investments. The increase in disclosure requirements and the requirement to establish audit committees that will be introduced by the forthcoming modifications of the 4th, the 7th and the 8th Company Law Directives are viewed by most as important steps towards improving corporate governance. However, further legislative measures in this field should be taken.

At the next meeting of the Forum, which is planned for November 2005, the ‘comply-or-explain’ principle, which obliges companies to justify deviations from corporate governance codes they apply, will be discussed and the exchange of views on shareholders’ rights and internal control will be continued.
More information on this subject and on corporate governance at European level, including guidance of the Commission on directors’ remuneration and the roles of independent directors, can be found by following the link to the Website of the European Union:

European web site