The OECD Corporate Governance Committee has launched a further review of the OECD Principles of Corporate Governance. The OECD has stated that the review process starts in 2014 with the objective of conclusion within one year.
The OECD Principles are one of the 12 key standards for international financial stability of the Financial Stability Board (FSB) and form the basis for the corporate governance component of the Report on the Observance of Standards and Codes of the World Bank Group.
The rationale for the review is to ensure the continuing high quality, relevance and usefulness of the Principles taking into account recent developments in the corporate sector and capital markets. The outcome should provide policy makers, regulators and other rule-making bodies with a sound benchmark for establishing an effective corporate governance framework.
The review will be based on the 2004 version of the Principles, which operate on the basis that a high level of transparency, accountability, board oversight, and respect for the rights of shareholders and role of key stakeholders is part of the foundation of a well-functioning corporate governance system. The OECD believes that these core values should be maintained and, as appropriate, be strengthened to reflect experiences since 2004.