Corporate Governance OECD
OECD stands for “Organization for Economic Co-operation and Development”. It is an international economic organization of 34 countries founded in 1961 to stimulate economic progress and world trade.
OECD principles were first released in May 1999 and later revised in 2004. The OECD Principles are one of the 12 key standards for international financial stability of the Financial Stability Board. They emphasize on the corporate governance agenda. They also provide the basis for an extensive programme of cooperation between OECD and non-OECD countries.
1. Ensuring the Basis for an Effective Corporate Governance Framework
The corporate governance framework should promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities.
2. The Rights of Shareholders and Key Ownership Functions
The corporate governance framework should protect and facilitate the exercise of shareholders’ rights.
3. The Equitable Treatment of Shareholders
The corporate governance framework should ensure the equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders should have the opportunity to obtain effective redress for violation of their rights.
4. The Role of Stakeholders in Corporate Governance
The corporate governance framework should recognize the rights of stakeholders established by law or through mutual agreements and encourage active co-operation between corporations and stakeholders in creating wealth, jobs, and the sustainability of financially sound enterprises.
5. Disclosure and Transparency
The corporate governance framework should ensure that timely and accurate disclosure is made on all material matters regarding the corporation, including the financial situation, performance, ownership, and governance of the company
6. The Responsibilities of the Board
The corporate governance framework should ensure the strategic guidance of the company, the effective monitoring of management by the board, and the board’s accountability to the company and the shareholders.
Written by: Matt
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Tagged as corporate governance, creating wealth, disclosure, economic organization, economic progress, enforcement authorities, financial situation, governance agenda, governance framework, international financial stability, mutual agreements, oecd countries, oecd principles, redress, rights of shareholders, rule of law, shareholders rights, stakeholders, sustainability, transparency + Categorized as Business, Economy articles