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INTERNATIONAL CONTEXT


» Context

Expectations of investors and regulators are increasingly being harmonized through the global village of international markets. Distinctions, however, still exist among juridictions.

» In the News [please contact us for further archival references]
2007 ASX [Australian Stock Exchange] updated Corporate Governance Principles and Recommendations, to apply effective January 1, 2008, based on a set of guidelines and disclosure of “if not, why not” in governance reporting, and risk management policies including internal controls tailored to the company’s risk profile.
08Feb07 SEC Commissioner R.Campos, “In civil law countries, such as most of continental Europe, the fiduciary principle is far less developed and the rules-based approach in such countries permits in many cases the controlling shareholder to extract private benefits at the expense of minority shareholders”.
08Feb07 SEC Commissioner R Campos
“The US system is one of a regulator led approach, where the SEC establishes rules…by contrast the UK has a [principles-based] approach, which in the case of shareholders relies on the shareholders to protect their interests directly by providing a framework for them to do so [based on the best interests of each company, on a company-by-company basis] [the absence of a form of shareholder access to nominations, proxy voting and majority voting rules, shareholder advisory votes on executive compensation] in the US was cited as a disincentive for EU investment in US companies].
» Briefing Notes - © The Governance Counsel™ (2007)