Report of the Technical Committee of IOSCO in Consultation with the OECD
The Technical Committee of IOSCO (TC) decided in 2005, as stated in the report on “Strengthening Capital Markets against Financial Fraud”, to undertake additional descriptive, thematic analyses of the definition and role of independent directors on the boards of issuers. This is perceived as a key element to reinforce Corporate Governance and, therefore, improve the integrity of capital markets.
For this purpose, a Task Force, co-chaired by the Spanish CNMV and the Australian ASIC, was set up in October 2005 with the mandate to undertake an overview, in a fact-finding approach, of the main mechanisms and provisions by which the independence of the board is protected and strengthened across the jurisdictions represented in the TC plus a number of countries that have volunteered in this exercise. The aim of this Report is not to propose any recommendations or best practices, but to describe, in a structured and comparable way, the situation in the most relevant capital markets.
See full Report, in pdf format.
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