New Corporate Governance Code for Listed Companies as of 1 January 2009

The working group appointed by the Board of the Securities Market Association has finished its work for updating and amending the Corporate Governance Recommendation for Listed Companies issued on 2 December 2003. The recommendation has been seen to work well and be of a high international standard. Amendments to the Finnish legislation in general and directives enacted by the European Union as well as international developments created, however, a need to update the Recommendation.

Clarification of communication practices of companies shall strengthen the electronic communications of the company and the use of the company's home pages as the primary channel of communications. A corporate governance statement shall thus be provided to investors via companies’ home pages. The statement shall, for instance, include information on the principles as regards management remuneration and the decision-making order must also be made thereby available.

The new Code shall also direct the composition of the Board of Directors as well as the assessment of independence of the Board members. The composition of the Board of Directors should be extended and both genders be presented. In addition, the length of the mandate shall be taken into consideration while assessing his/her independence in the future.

The new Corporate Governance Code approved by the Board of the Securities Market Association in October 2008 shall come into force as of 1 January 2009. Changes requiring approval of the annual general meeting of shareholders must be resolved at the annual general meeting of year 2009.

Further information shall be given by the chairman of the Board of Directors, Pekka Merilampi, who has also been consulted as an expert by the working group, and partners Jukka Laitasalo and Ari Keinänen.News archive

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