Corporate governance code

The Corporate Governance Code, known in the Netherlands as the Dutch Corporate Governance Code, sets out recommendations for the organisation of management, supervision and shareholder relations. The Code applies to listed companies and operates on a “comply or explain” basis.

The Code is relevant because it promotes investor confidence and contributes to the integrity and transparency of business operations. Non-compliance may result in reputational damage or raise questions as to the quality of the board’s governance.

In practice, law firms advise clients on the implementation of the Code and on compliance reporting in the annual report.