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Seminar objectives and organisation
Parliamentarians have a key role to play in helping governments and societies to improve corporate governance standards, and thereby improve the foundations for economic growth and development the world over.
The objectives of this seminar will be to:
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listen to their views on the challenge of implementing the necessary reforms to improve corporate governance standards;
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seek parliamentarians' support for building the necessary political will and momentum to push this agenda forward.
This seminar will be held at OECD headquarters on 7 October, the day following the Council of Europe's Parliamentary Assembly debate in Strasbourg on the work of the OECD. Members of this Parliamentary Assembly will be invite to participate, along with a number of other parliamentarians from OECD countries.
This will be a half day seminar, starting at 10.00 am, including a working lunch which will finish at 3.00 pm.
Background
Good corporate governance underpins market confidence, integrity and efficiency, and hence promotes economic growth and financial stability. It requires transparent and reliable disclosure mechanisms about corporate performance. Clearly defined responsibilities and effective powers among the shareholders, the board and management are also needed.
The OECD plays a leading role in the international movement towards raising the quality of corporate governance. The OECD Principles of Corporate Governance, first issued in 1999 reflect a call by Member countries for a set of corporate governance standards to guide policy makers, parliamentarians, regulators, investors and other private sector actors. Today, the OECD Principles enjoy worldwide recognition and have been endorsed as one of the Financial Stability Forum’s twelve key standards considered essential for financial stability. The full text of the OECD’s Principles of Corporate Governance are available , along with a wealth of other material, on the OECD’s Corporate Affairs website.
The numerous high-profile cases of corporate governance failure have focused the minds of governments, parliamentarians, regulators, companies, investors and the general public on the weaknesses in corporate governance systems and the associated threat posed to the integrity of financial markets. In response, in 2002 OECD Ministers called for an assessment and review of the Principles which were approved by the OECD Council in April 2004. At the annual Ministerial Council Meeting in May 2004, Ministers welcomed the new Principles and encouraged their wide dissemination and active use. Observers from key international institutions participated actively in the assessment process and consultations were held with the private sector, labour, civil society and with non-OECD countries. Public comments on a draft of the Principles were sought via the Internet and attracted many constructive suggestions.
The assessment concluded that the Principles should be revised to take into account new developments and concerns, while retaining their non-binding principles-based-approach which recognises the need to adapt implementation to varying legal, economic and cultural circumstances. The revised Principles include a new chapter which sets broad principles for effective implementation and enforcement, including those to be followed when new regulatory measures are being considered.
Good corporate governance relies on effective checks and balances. To strengthen them, the revised Principles aim to tighten the oversight of management by the board, and to improve the accountability of the board to shareholders. New principles call for the exercise of informed ownership by shareholders through both strengthening their ability to influence the board and by lowering the costs of exercising ownership rights. In addition, the Principles call for an increased attention to managing conflicts of interest through enhanced disclosure and transparency. The need to declare and manage conflicts of interest now concerns not only managers and controlling shareholders, but also institutional investors, auditors, brokers and analysts.
The Principles are the centre-piece of the numerous activities undertaken by the OECD to improve corporate governance. In particular, in co-operation with the World Bank, the OECD has used the Principles as a reference for policy dialogue in Asia, Latin America, Eurasia, Southeast Europe, Russia, and most recently in the Middle East and North Africa region. Heads of State at the 2003 Evian G8 Summit endorsed the review of the OECD Principles and called for continued global efforts to enhance corporate governance.
The effectiveness of the revised Principles now calls for their active use by governments, parliamentarians, regulators and private parties, as well as continuing international policy dialogue and the sharing of experiences with successful implementation policies.
Programme 10am to 5pm
Welcome by Donald J. Johnston, OECD Secretary-General
Presentation on Corporate Governance Developments in OECD Countries
Discussion with parliamentarians on issues at the forefront of the corporate governance debate.
Presentation on OECD Corporate Governance Principles
Discussion with parliamentarians on using the Principles to raise corporate governance standards.
Break for lunch
Working lunch -- luncheon discussion on Corporate Governance of Pension Funds
Corporate Social Responsibility and the OECD Guidelines for Multinational Enterprises
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