The importance of Corporate Governance for the growth and sustainability of businesses
Nowadays no-one questions the importance of corporate governance as a key factor for the growth and sustainability of enterprises, and as a means to boost investor confidence. This has been borne out in recent years by the OECD in its Principles of Corporate Governance and by the European Commission in the Action Plan: European company law and corporate governance, among others. Corporate governance, in the classic definition of the OECD, covers a whole series of relationships between the managing body of a company, its board, shareholders and other stakeholders.
Corporate governance is currently subject to a far-reaching review both internationally and in Spain. For example, the European Union, in the above-mentioned Action Plan of December 2012, is already paving the way for legislative initiatives and recommendations. In Spain, the 2013 National Reform Plan gave rise, among other measures, to the creation of a Committee of Experts for the preparation of a study to analyze the good governance of companies and proposed measures that allowed for improved efficiency and responsibility in the management of Spanish enterprises. The study also gave rise to a Bill on reform of the Corporate Enterprises Law (Ley de Sociedades de Capital) currently undergoing passage through Parliament.
In order to provide listed companies and, in general, all stakeholders with a point of reference regarding the situation of corporate governance in Spain, we have created the Corporate Governance Portal. The Portal contains a series of sections (such as Spanish corporate governance codes, initiatives, basic Spanish and European legislation, corporate governance at credit institutions and at public entities and authorities, etc.) to allow users to keep abreast of the current situation and new developments in this area. It also includes a section containing publications by Garrigues in this area.
Garrigues Commercial Law Department