CLIR: Company Law and Corporate Governance
Company Law and Corporate Governance
The CLIR Company Law and Corporate Governance questions focus on the ability of persons to form joint stock companies and the rights of shareholders within such a company. The questions also focus on corporate governance and the duties and responsibilities of management to shareholders. Comparative corporate governance has become an important focus with respect to law and development. The Organization for Economic Cooperation and Development (OECD) has developed a set of principles for corporate governance. The OECD principles emphasize the core principles of fairness, transparency, accountability and responsibility. The five main subject areas covered include the rights of shareholders, equitable treatment of shareholders, the role of stakeholders, disclosure and transparency and the responsibility of the board.
The Company Law and Corporate Governance questions were based in part on the core principles set forth in the OECD principles. The questions assess the legal, institutional, and regulatory frameworks in place in a country with an eye towards seeing whether they facilitate good corporate governance and Company Law practice. The OECD Principles, along with other similar guidance and codes of conduct, focus on key structures that must be in place and well functioning for development of a good governance environment. The existence of a good governance environment should facilitate stronger investment activity.
|
