Agenda

LETTER TO PARLIAMENT ON THE LATEST STATE OF AFFAIRS REGARDING CORPORATE GOVERNANCE CODE

23/12/2022

In the letter of 20 December 2022, Minister Adriaansens (EZK) informed the House of Representatives about the latest developments in the field of the Corporate Governance Code (hereinafter: the Code).

 

The updated Corporate Governance Code 2021

The updated Corporate Governance Code of companies has been drawn up after extensive consultation with and input from stakeholders, such as large companies, trade unions and other interested parties. The new Corporate Governance Code is an update of the Code from 2016. The update mainly concerns long-term value creation, diversity and the role of shareholders. In addition, parties and stakeholders can find each other less often due to more juridification. It has therefore been decided, pending the first results, not to appoint any new Commissioners as of 1 January 2023.

The House of Representatives will send a response to the updated Code and the Monitoring Report for the 2021 financial year in the first quarter of 2023. The government also intends to enshrine the updated Code in law.

 

The updated new Code requires companies to:

  • when determining the strategy and making decisions, the directors of companies focus on sustainability and sustainability in the long term;
  • the companies report annually on the effects of their actions on people and the environment, the involvement of stakeholders and the extent to which they have achieved the formulated objectives;
  • the companies take the interests of stakeholders into account;
  • the companies draw up a diversity and inclusion policy for the entire company;
  • the companies pay more attention to technological developments, such as the impact of new technologies and changing business models.

 

Corporate Governance Code compliance in 2021

According to the published monitoring report on compliance with the Code in 2021, compliance with the new Code has been found to be good.

In case of questions, please feel free to contact NAZALI (nazali_amsterdam@nazali.com).

 

References:

https://www.rijksoverheid.nl/onderwerpen/corporate-governance/nieuws/2022/12/20/duurzame-lange-termijn-aanpak-centraal-in-nieuwe-corporate-governance-code

https://www.rijksoverheid.nl/onderwerpen/corporate-governance

 

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