Post by account_disabled on Mar 6, 2024 8:37:39 GMT
In most countries there is an institution in charge of monitoring and evaluating that investment services companies and credit institutions act correctly and offer investors clear information about their impact at an environmental, social and corporate level.
In Spain, the National Securities Market Commission (CNMV) is the body responsible for the supervision and inspection of the Spanish securities markets and the activity of all those involved in them.
Its main objectives are:
Ensure the transparency of the Spanish securities markets
Ensure correct price formation.
Guarantee investor protection.
Within these objectives, the CNMV is also responsible for promoting policies and initiatives that improve the financial training of companies.
One of the most recent is the update of the reform of the Code of Good Governance of Listed Companies, whose purpose is to increase the participation of women on boards of directors, as well as increase diversity, extend recommendations on sustainability, among others. . Let's see.
Reform of the Code of Good Governance of Listed Companies
This Code of Good Governance of listed companies was approved in 2006 by the Agreement of the Council of the National Securities Market Commission (CNMV) and has been used as a platform to promote legislative initiatives that address issues such as diversity, sustainability, social responsibility. , reputation and more.
The most recent update of the Good Governance Chile Mobile Number List Code of listed companies indicates that companies will have until 2020 to comply with the recommendation of having 40% women as well as rethink the term "corruption" when it relates to actions that must be carried out when a company is going through a reputational crisis.
With gender equality, the LA economy will grow
Additionally, it focused on four areas:
Give greater relevance to non-financial information and sustainability.
Promote the presence of women on boards of directors.
Allocate more attention to reputational and non-financial risks.
Clarify certain aspects regarding the remuneration of directors.
It also has various legal modifications that introduce clauses related to areas such as gender diversity on boards of directors, among them the increase in gender diversity stands out.
The CNMV has raised the percentage of female directors that companies should have from 30% to 40%. For this, it gives a deadline until the end of 2022, although until that date the percentage should not be less than 30%.
CNMV
As part of this clause, the CNMV invites there to be a growth in the number of senior executives to reinforce gender diversity on boards of directors in the long term.
Transparency and information
Another of the guidelines that is integrated into this new reform seeks for companies to be more transparent and share information constantly that allows them to know the situation in which the company finds itself.
Companies should establish rules that oblige directors to report and, where appropriate, to resign, as well as to inform the board of directors of any criminal case in which they appear to be under investigation and their procedural vicissitudes.
In the event that a company finds itself in a delicate legal situation, the directors must analyze the situation in detail to proceed with making decisions that will help the company handle its case.
Guide to a diversity and inclusion policy
Abstract background with colorful jigsaw puzzle pieces in the lower side
Fernando Zunzunegui, a lawyer specialized in financial regulation and regulated sectors and trustee of the FinSalud foundation, mentions that the modification of this reform is a change of enormous importance as it affects the very concept of a company.
To the profit motive and good governance of the company, social and environmental objectives must be added at the same level.
Fernando Zunzunegui.
Other recommendations that have been partially modified talk about the mechanisms for resolving conflicts of interest that companies must have with entities with which they have direct or indirect business relationships.
What else does it cover?
One more modification to this code is based on the situation caused by COVID-19. This indicates that companies must have systems in place so that shareholders can exercise their voting rights by telematic means.
On the other hand, technical adjustments were made to the recommendations and the term corporate social responsibility was replaced by the broader and currently used term sustainability in relation to environmental, social and corporate governance aspects.
Sustainability is changing the entire business landscape: study
Pixabay License
In order to verify compliance with these objectives, the creation of sustainability commissions within the board of listed companies is recommended. In fact, the name of the Code should be changed because it currently goes beyond the scope of good governance. We are facing a Sustainability Code.
Fernando Zunzunegui.
Non-financial risks and information were also reconsidered, with technical adjustments in the wording for better supervision of information and control systems, risk management of both a financial and non-financial nature, as well as all those issues such as communication channels. complaints usable by employees or other interest groups.
Although this reform raises a new stage in terms of corporate governance and issues related to sustainability and social responsibility, companies do not have the obligation to comply from start to finish with the code but they must be more specific in their governance reports. corporate.
In Spain, the National Securities Market Commission (CNMV) is the body responsible for the supervision and inspection of the Spanish securities markets and the activity of all those involved in them.
Its main objectives are:
Ensure the transparency of the Spanish securities markets
Ensure correct price formation.
Guarantee investor protection.
Within these objectives, the CNMV is also responsible for promoting policies and initiatives that improve the financial training of companies.
One of the most recent is the update of the reform of the Code of Good Governance of Listed Companies, whose purpose is to increase the participation of women on boards of directors, as well as increase diversity, extend recommendations on sustainability, among others. . Let's see.
Reform of the Code of Good Governance of Listed Companies
This Code of Good Governance of listed companies was approved in 2006 by the Agreement of the Council of the National Securities Market Commission (CNMV) and has been used as a platform to promote legislative initiatives that address issues such as diversity, sustainability, social responsibility. , reputation and more.
The most recent update of the Good Governance Chile Mobile Number List Code of listed companies indicates that companies will have until 2020 to comply with the recommendation of having 40% women as well as rethink the term "corruption" when it relates to actions that must be carried out when a company is going through a reputational crisis.
With gender equality, the LA economy will grow
Additionally, it focused on four areas:
Give greater relevance to non-financial information and sustainability.
Promote the presence of women on boards of directors.
Allocate more attention to reputational and non-financial risks.
Clarify certain aspects regarding the remuneration of directors.
It also has various legal modifications that introduce clauses related to areas such as gender diversity on boards of directors, among them the increase in gender diversity stands out.
The CNMV has raised the percentage of female directors that companies should have from 30% to 40%. For this, it gives a deadline until the end of 2022, although until that date the percentage should not be less than 30%.
CNMV
As part of this clause, the CNMV invites there to be a growth in the number of senior executives to reinforce gender diversity on boards of directors in the long term.
Transparency and information
Another of the guidelines that is integrated into this new reform seeks for companies to be more transparent and share information constantly that allows them to know the situation in which the company finds itself.
Companies should establish rules that oblige directors to report and, where appropriate, to resign, as well as to inform the board of directors of any criminal case in which they appear to be under investigation and their procedural vicissitudes.
In the event that a company finds itself in a delicate legal situation, the directors must analyze the situation in detail to proceed with making decisions that will help the company handle its case.
Guide to a diversity and inclusion policy
Abstract background with colorful jigsaw puzzle pieces in the lower side
Fernando Zunzunegui, a lawyer specialized in financial regulation and regulated sectors and trustee of the FinSalud foundation, mentions that the modification of this reform is a change of enormous importance as it affects the very concept of a company.
To the profit motive and good governance of the company, social and environmental objectives must be added at the same level.
Fernando Zunzunegui.
Other recommendations that have been partially modified talk about the mechanisms for resolving conflicts of interest that companies must have with entities with which they have direct or indirect business relationships.
What else does it cover?
One more modification to this code is based on the situation caused by COVID-19. This indicates that companies must have systems in place so that shareholders can exercise their voting rights by telematic means.
On the other hand, technical adjustments were made to the recommendations and the term corporate social responsibility was replaced by the broader and currently used term sustainability in relation to environmental, social and corporate governance aspects.
Sustainability is changing the entire business landscape: study
Pixabay License
In order to verify compliance with these objectives, the creation of sustainability commissions within the board of listed companies is recommended. In fact, the name of the Code should be changed because it currently goes beyond the scope of good governance. We are facing a Sustainability Code.
Fernando Zunzunegui.
Non-financial risks and information were also reconsidered, with technical adjustments in the wording for better supervision of information and control systems, risk management of both a financial and non-financial nature, as well as all those issues such as communication channels. complaints usable by employees or other interest groups.
Although this reform raises a new stage in terms of corporate governance and issues related to sustainability and social responsibility, companies do not have the obligation to comply from start to finish with the code but they must be more specific in their governance reports. corporate.