Corporate Governance and Directors' Duties Country Q&A tool

This tool enables subscribers to search the Country Q&A in the Corporate Governance and Directors' Duties multi-jurisdictional guide by question and jurisdiction. Simply select the questions and the jurisdictions that you are interested in and click the "submit" button.

Please note that the law stated dates for each jurisdiction covered may not be the same. To check the law stated dates for each jurisdiction, please visit the individual article.

Choose your questions - Select all/De-select all

Choose your jurisdictions - Select all/De-select all

Legal framework

1. What is the regulatory framework for corporate governance and directors' duties?
 
2. Has your jurisdiction adopted a corporate governance code? If yes:
  • What is the name of the code? What areas are covered by it (for example, board composition and committees, remuneration, audit and risk)?

  • How is the code structured (for example, a set of rules or principles and provisions)? What type of companies must comply with the code?

  • Is the code based on the comply or explain principle? How are companies required to report their application and compliance with the code (for example, in their annual report)?

  • What are the consequences of non-compliance with the code?

  • What has been the general response of companies, regulators and shareholder groups to the comply or explain approach? Has it been popular or controversial? Are there plans to reform it?

 

Board composition and remuneration of directors

3. What is the management/board structure of a company? In particular:
  • Is there a unitary or two-tiered board structure?

  • Who manages a company and what name is given to these managers?

  • Who sits on the board(s)?

  • Do employees have a right to board representation?

  • Is there a minimum or maximum number of directors or members of the managerial and supervisory bodies?

 
4. Are there any age or nationality restrictions on the identity of directors?
 
5. In relation to non-executive, supervisory or independent directors:
  • Are they recognised?

  • Does a part of the board have to consist of them? If so, what proportion?

  • Do non-executive or supervisory directors have to be independent of the company? If so, what is the test for independence or what makes a director not independent?

  • What is the scope of their duties and potential liability to the company, shareholders and third parties?

 
6. Are the roles of individual board members restricted? For example, can one person be the chairman and chief executive?
 
7. How are directors appointed and removed? Is shareholder approval required?
 
8. Are there any restrictions on a director's term of appointment?
 
9. Do directors have to be employees of the company? Can shareholders inspect directors' service contracts?
 
10. Are directors allowed or required to own shares in the company?
 
11. How is directors' remuneration determined? Is its disclosure necessary? Is shareholder approval required?
 

Management rules and authority

12. How is a company's internal management regulated? For example, what is the length of notice and quorum for board meetings, and the voting requirements to pass resolutions at them?
 
13. Can directors exercise all the powers of the company or are some powers reserved to the supervisory board (if any) or a general meeting? Can the powers of directors be restricted and are such restrictions enforceable against third parties?
 
14. Can the board delegate responsibility for specific issues to individual directors or a committee of directors? Is the board required to delegate some responsibilities, for example for audit, appointment or directors' remuneration?
 

Duties and liabilities of directors

15. What is the scope of a director's duties and personal liability to the company, shareholders and third parties? Please distinguish between civil and criminal liability under each of the following (if relevant):
  • General duties.

  • Theft and fraud.

  • Securities law.

  • Insolvency law.

  • Health and safety.

  • Environment.

  • Anti-trust.

  • Other.

 
16. Can a director's liability be restricted or limited? Is it possible for the company to indemnify a director against liabilities?
 
17. Can a director obtain insurance against personal liability? If so, can the company pay the insurance premium?
 
18. Can a third party (such as a parent company or controlling shareholder) be liable as a de facto director (even though such person has not been formally appointed as a director)?
 

Transactions with directors and conflicts

19. Are there general rules relating to conflicts of interest between a director and the company?
 
20. Are there restrictions on particular transactions between a company and its directors?
 
21. Are there restrictions on the purchase or sale by a director of the shares and other securities of the company he is a director of?
 

Disclosure of information

22. Do directors have to disclose information about the company to shareholders, the public or regulatory bodies?
 

Company meetings

23. Does a company have to hold an annual shareholders' meeting? If so, when? What issues must be discussed and approved?
 
24. Can shareholders call a meeting or propose a specific resolution for a meeting? If so, what level of shareholding is required to do this?
 

Minority shareholder action

25. What action, if any, can a minority shareholder take if it believes the company is being mismanaged and what level of shareholding is required to do this?
 

Internal controls, accounts and audit

26. Are there any formal requirements or guidelines relating to the internal control of business risks?
 
27. What are the responsibilities and potential liabilities of directors in relation to the company's accounts?
 
28. Do a company's accounts have to be audited?
 
29. How are the company's auditors appointed? Is there a limit on the length of their appointment?
 
30. Are there restrictions on who can be the company's auditors?
 
31. Are there restrictions on non-audit work that auditors can do for the company that they audit accounts for?
 
32. What is the potential liability of auditors to the company, its shareholders and third parties if the audited accounts are inaccurate? Can their liability be limited or excluded?
 

Corporate social responsibility

33. Is it common for companies to report on social, environmental and ethical issues? Please highlight, where relevant, any legal requirements or non-binding guidance/best practice on corporate social responsibility.
 

Company secretary

34. What is the role of the company secretary in corporate governance?
 

Institutional investors and shareholder groups

35. How influential are institutional investors and other shareholder groups in monitoring and enforcing good corporate governance? Please list any such groups with significant influence in this area.
 

Whistleblowing

36. Is there statutory protection for whistleblowers (persons who disclose criminal activity or serious malpractice within a company)?
 

Reform

37. Please summarise any proposals for reform and state whether they are likely to come into force and, if so, when.