First released in May 1999 and subsequently revised in 2004, the OECD Corporate Governance Committee conducted a further review of the OECD Principles of Corporate Governance. The review process started in 2014 and concluded in 2015.
The OECD Principles are one of the 12 key standards for sound financial systems of the Financial Stability Board (FSB) and form the basis for the corporate governance component of the Report on the Observance of Standards and Codes of the World Bank Group.
The rationale for the review was 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 outcome provides policy makers, regulators and other rule-making bodies with a sound benchmark for establishing an effective corporate governance framework.
The basis for the review was 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. These core values were maintained and strengthened to reflect experiences since 2004.
As the Principles are a global standard also adopted by the FSB, all FSB member jurisdictions were invited to participate in the review as Associates and have the same decision-making rights as OECD members.
The review benefited from consultations with stakeholders, including the business sector, investors, professional groups at national and international levels, trade unions, civil society organisations and other international standard setting bodies. The OECD invited public comment on a revised draft text via an online public consultation between 14 November 2014 and 4 January 2015.