New rules on corporate governance

New rules on corporate governance

Two years after the scandal of jewelry company Folli Follie broke out, a new bill by the Finance Ministry is seen leading to the strengthening of corporate governance and the institutional shielding of the Greek stock market.

The bill that was put up on Thursday for public consultation until March 26 aims at the more efficient corporate governance of companies and the immediate adjustment of the capital market’s operation to Greek and European conditions as they change, while contributing toward the protection of shareholders and investors, attracting foreign investments and facilitating the creation of flexible forms of alternative investments.

Regarding corporate governance, the draft law introduces five significant clauses that strengthen the role of the market’s regulator, the Capital Market Commission, including changes to the operation of governing boards and the selection of their members, with the vice president elected by the non-executive members, whose role will be strengthened. Another rule imposes clear and specific obligations for each company’s information to its shareholders and the investing public.

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