The European Corporate Governance Forum which examines best practices in member states in the field of corporate governance, has issued a public statement clarifying the 'comply or explain' principle, which obliges companies to justify any deviation from corporate governance codes. The Forum has also issued a report detailing its activities in 2005 and its plans for future activities.
The 'comply or explain' principle forms the basis of the European code-based approach to corporate governance. The Forum has undertaken to define in more detail the advantages and the limits of the 'comply or explain' principle from a European perspective.
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