OECD countries have agreed that the corporate governance practices of private equity firms and hedge funds are best addressed within the framework of the existing OECD Principles of Corporate Governance. They consequently rejected the idea of a separate OECD code on the role of hedge funds and private equity firms in corporate governance. The agreement came at a recent meeting of corporate governance experts and policy makers.
The OECD believes it is essential to take into account existing voluntary codes and industry guidelines when addressing issues that have attracted public concern, such as conflicts of interest, the efficiency of the market for takeovers, transparency around major shareholdings and the robustness of voting systems.
“A close dialogue with the hedge fund and private equity industry on corporate governance is essential,” says Marcello Bianchi who chairs the OECD Steering Group on Corporate Governance responsible for these issues. “We will therefore compare all the voluntary standards that are already out there and look for ways to develop a dialogue with representatives from the industry about key corporate governance issues.”
See full Press Release.
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