News item | 19-01-2024 | 13:15
Good corporate governance protects the interests of shareholders, employees and society. Rules of conduct for this are included in the Corporate Governance Code. All listed companies and institutional investors with headquarters in the Netherlands must justify in their management report how they comply with the code. At the proposal of Minister Adriaansens of Economic Affairs and Climate, the Council of Ministers has agreed to strengthen the future of this corporate governance system.
In 2023, an exploration was carried out into the future-proofing of the Dutch corporate governance system for the next ten years. This exploration emphasized the value of the Code and the existing system, but also showed some points of interest, including the legalization of the Code and the increasing overlap between legislation and regulations.
To ensure that the Code and the Corporate Governance Monitoring Committee continue to add value in the coming years, a number of conditions have been identified. The Code must be distinctive and of added value compared to legislation and regulations. The Code must be able to count on support from listed companies, shareholders and employees, government and society. At the same time, the Code must have a sufficient level of ambition. This requires an effective, independent and unifying role for the Commission.
To meet these conditions, the government is taking a number of steps. The Commission’s Establishing Decree will be amended to clarify the Commission’s tasks, emphasize its independence and avoid overlap with legislation and the Code. In addition, a strong secretariat will be set up to support the Commission, acting as a bridge between the parties involved.
The public recruitment and selection procedure for the chairman for the new Corporate Governance Monitoring Committee has been initiated. The chairman must become the figurehead of the Commission, have relevant experience and knowledge and must take great care to ensure support for the Code and authority of the Commission as a whole. The cabinet will appoint the new committee as soon as it has been composed by the intended chairman with the other members.