OECD Principles

Question 1

I. Ensuring the basis for an effective corporate governance framework

Answer 1

The corporate governance framework should promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities

Question 2

II. The rights of shareholders and key ownership functions

Answer 2

The corporate governance framework should protect and facilitate the exercise of shareholders’ rights.

Question 3

III. The equitable treatment of shareholders

Answer 3

The corporate governance framework should ensure the equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders should have the opportunity to obtain effective redress for violation of their rights

Question 4

IV. The role of stakeholders in corporate governance

Answer 4

The corporate governance framework should recognise the rights of stakeholders established by law or through mutual agreements and encourage active co-operation between corporations and stakeholders in creating wealth, jobs, and the sustainability of financially sound enterprises

Question 5

V. Disclosure and transparency

Answer 5

The corporate governance framework should ensure that timely and accurate disclosure is made on all material matters regarding the corporation, including the financial situation, performance, ownership, and governance of the company.

Question 6

VI. The responsibilities of the board

Answer 6

The corporate governance framework should ensure the strategic guidance of the company, the effective monitoring of management by the board, and the board’s accountability to the company and the shareholders