OECD Principles of Corporate Governance

In April, 2004, the Organization for Economic Cooperation and Development (OECD) publicly released the revised OECD Principles of Corporate Governance.

The Principles are non-binding and intended to assist member and non-member governments in their efforts to evaluate and improve the legal, institutional and regulatory framework for corporate governance in their countries, and to provide guidance and suggestions for stock exchanges, investors, corporations, and other parties that have a role in the process of developing good corporate governance. As such, the Principles are intended to provide a set of guidelines for the implementation of an effective corporate governance framework; not only for companies themselves but rather for an entire system of legislation, regulation and guidelines. The basic areas addressed are: The Rights of Shareholders and Key Ownership Functions; The Equitable Treatment of Shareholders; The Role of Stakeholders in Corporate Governance; Disclosure and Transparency; and The Responsibilities of the Board.