The OECD Principles of Corporate Governance are currently being updated to ensure their continuing high quality, relevance and usefulness, taking into account recent developments in the corporate sector and capital markets. As part of this process, the OECD invited public comment on a revised draft text between 14 November 2014 and 4 January 2015. The 75 comments received are available online and will be used to inform revisions to the updated text. The final version of the revised Principles is scheduled for completion in 2015.
Scope and purpose of the review
The Principles of Corporate Governance is a public policy instrument intended to assist governments and regulators in their efforts to evaluate and improve the legal, regulatory and institutional framework for corporate governance. They also provide guidance for stock exchanges, investors, corporations and others that have a role in the process of developing good corporate governance. The objective of the Principles is to contribute to economic efficiency, sustainable growth and financial stability. The rationale for the review is to ensure the continuing high quality, relevance and usefulness of the Principles taking into account recent developments in the corporate sector and capital markets.
The basis for the review is the 2004 version of the Principles, which embrace the shared understanding that a high level of transparency, accountability, board oversight, and respect for the rights of shareholders and role of key stakeholders is part of the foundation of a well-functioning corporate governance system. The review is carried out under the auspices of the OECD Corporate Governance Committee.
The Principles is one of the key standards for sound financial systems of the Financial Stability Board (FSB) and the basis for the corporate governance component of the Report on the Observance of Standards and Codes of the World Bank. As a consequence, input to the review is solicited from a large number of jurisdictions that are not members of the OECD. The OECD Corporate Governance Committee has invited all FSB member jurisdictions to participate in the review with the same decision-making rights as OECD members in the Corporate Governance Committee.
The review process also includes consultations with the business sector, investors, professional groups at national and international levels, trade unions, civil society organisations, other stakeholders and international standard setting bodies.