Corporate Governance within National Reform Program approved by Spanish Government
On Friday, April 26 the Spanish Council of Ministers approved the submission of the 2013 National Reform Program and the 2013-2016 Spain Stability Program update to the European Union and the European Commission. As indicated in the reference from the Council of Ministers, both documents reflect Spain’s economic policy strategy for the coming years.
One of the points in the National Reform Program is the reform of corporate governance in Spain. The aim is to reform and expand the current framework of corporate governance best practices in Spain in order to enhance efficiency and accountability in the management of Spanish companies and, at the same time, to set the bar for Spanish standards at the highest level of compliance. To this end, the following measures are envisaged:
- Preparing a study/analysis of international corporate governance best practices and the areas in which Spain can improve its current framework with a view to implementing the appropriate reforms within one year.
- Bolstering the role of shareholders’ meetings in monitoring the compensation arrangements for managing bodies and senior executives of companies; in addition, the recommendations of the Spanish Unified Code of Good Governance for listed companies will be perfected and expanded; the possibility of preparing a Code of Best Practices for unlisted Spanish companies will be analyzed and new improvements introduced into the governance of credit institutions in line with legal developments in the European Union.