Overview:
The role of independent directors | Director’s remuneration | Collective responsibility of the board members in the EU | Transparency is key | Fostering an appropriate regime for shareholders’ rights | Conclusion
Investor confidence has been deeply shaken by scandals such as Parmalat in Italy and Enron in the United States. Scandals such as these have been extremely damaging to capital markets and have had a negative impact on the economy.
For years, companies have been able to use opaque accountability structures to reduce transparency to investors and regulators and to help them get away with corporate and financial malpractice. Italian dairy company Parmalat, for instance, hid losses and misled investors in a massive fraud that drove the company into bankruptcy and left investors with devastating losses.
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