2.5 European Union regulations

Question 1

What key element about the structure of boards makes the creation of an EU corporate governance code challenging?

Answer 1

Some countries operate a single unitary board while others such as Germany operate a dual board structure with two tiers - a management board and a supervisory board.

Question 2

Developing a degree of c___________ across the EU is essential to facilitate the operation of a s_______ m______

Answer 2

consistency

single market

Question 3

The EU has followed an action plan for corporate governance reform since 2003, most recently updated in 2012. This plan focusses on:

• recruitment of i_________ directors
• enhanced d________ requirements
• enhancing long-term s__________

Answer 3

independent
disclosure
sustainability

Question 4

Why is there no need for any organisations to comply directly with the governance requirements set by the EU?

Answer 4

EU regulations are adopted into the relevant domestic frameworks for corporate governance and risk management.