More about Corporate Governance 
Governance, management, responsibility and supervision

Corporate Governance

Corporate Governance, in the meaning of decent organisation management, seems self-evident, yet many companies can use help drawing up a code in order to concretise the standards of good governance, make their own additions and clarify them to the outside world.

A Corporate governance code allows the various stakeholders to influence the company and to keep the company in tune with its moral responsibilities. Ultimately, it is intended to give the company a good balance between the different stakeholders.

What is good Corporate Governance?

Corporate Governance concerns the management of a company in a sound and morally responsible manner. It is a collection of mechanisms, processes and relationships by which companies are controlled and managed. It provides structure and identifies how rights and obligations are divided between stakeholders. It serves as a guideline, in other words as a basis for how the following points should be designed:

Efficient governance

corporate governance

Responsible governance

responsible governance

Responsibility to:

  • Shareholders
  • Employees
  • Customers
  • Society

The relationships between:

  • Supervisory Board
  • The Board
  • The Management

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"Money Talks, Bullshit Walks"

- Thomas Langerwerf

corporate governance important

Why is corporate governance important?

The reasons why corporate governance is so important are as follows:

  • It ensures that all shareholders are treated equitably
  • It ensures ethical en integrity in the company
  • It ensures that the board has relevant skills en a good understanding to review management's performance. Making sure the management is properly reviewed
  • It considers and balances the interests of all stakeholders like shareholders and employees

What is the purpose of corporate governance?

Corporate governance has the purpose to ensure that all the interests of all the stakeholders like shareholders, employees, board of directors, CEO (Chief executive officer), senior-mangement, etc. are heard. It tries to balance every stakeholder's interest and makes sure that the management is controlled by the right people at the right time. The control of the management has to make sure that the management doesn't do anything that negatively impacts the interest of certain stakeholders.

corporate governance purpose

Corporate Governance Code

The Corporate Governance code is intended for listed companies and their shareholders, they must adhere to this code of conduct because it is also enshrined in law. However, a Corporate Governance code is also suitable for non-listed companies.

It contains more than 100 rules of conduct on for example: working methods, remuneration of directors / supervisory directors and tasks. It is intended to strengthen the position of shareholders (through the shareholders' meeting).

Examples of what the code prescribes are:

  • Directors are appointed for a term of 4 years;
  • A golden handshake may not exceed one year's salary;
  • A supervisory director may not have more than five different supervisory directorships;
  • A proposal for dividend will be treated as a separate item on the agenda of the general meeting;
  • A director will not take advantage of business opportunities that belong to the company for himself or second-degree family members;

The code consists of several topics:

  • Long-term value creation
  • Effective management and supervision
  • Rewards
  • Annual General Meeting of shareholders
  • One-tier board structure

How do we help with your corporate governance policy?

In addition to drawing up a specific policy for your company, we can also assist you in implementing and monitoring it. These are two important factors for corporate governance, without them it would remain a promise. We have a lot of experience in this subject, our colleagues love a challenge and are always there for you. The open and reliable work structure we use ensures, among other things, that your company is properly managed. Feel free to contact us for more information or advice.