Set of rules and principles regarding the proper an prudent management of a company
» Meer over corporate governance corporate governance Code for listed incorporations has been implemented in The Netherlands late 2004. This code of conduct is set up by the Tabaksblat-committee and is therefore also referred to as Code-Tabaksblat. Many other countries have similar corporate governance codes in place.
The Dutch Corporate Governance Code contains principles and best practices about the way the board accounts for its policies and it explains the system of how the board is monitored. Furthermore the Code includes rules regarding (avoiding) conflict of interests and the remuneration of board members.
The Code-Tabaksblat is reviewed in 2008 and again more recently in 2016. The latest code puts more emphasis on value creation of a company on the longer term and stipulates the importance of a transparant remuneration policy. Furthermore the document stresses the importance of a pleasant working environment. This comprehensive review is carried out in cooperation with various market players and interest groups.
Listed companies are required to comply with the code. If they choose not to comply, however, they must explain in the annual statements why they choose to ignore a certain rule of conduct. This is called the “comply or explain” approach.
In the Netherlands the Monitoring Committee Corporate Governance ensures the compliance of the code. This committee also ensures that the Dutch Corporate Governance Code stays up-to-date and remains effective.