Shareholders, not governments and regulators, must hold companies responsible for good governance, says a member of the European Commission. Speaking at a conference in Frankfurt last Tuesday, Pierre Delsaux, the commission member responsible for drawing up the new shareholder rights directive, explained that the directive is intended to empower shareholders so they can ensure companies follow best practice guidelines for corporate governance.
Delsaux emphasized that the commission does not believe there is a 'one-size-fits-all' model for corporate governance and that it is essential for each member state to have the freedom to draw up its own code. And he believes that shareholders are the best people to decide whether companies are adhering to governance codes.
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