Corporate governance in France

2,596 views

Published on

How corporate governance works in France. Par le même auteur, découvrez le site www.web-wonders.fr. Un site qui compile les meilleurs sites anglophones encore inexplorés.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,596
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
32
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Corporate governance in France

  1. 1. CORPORATE GOVERNANCE<br />Jean-ChristopheEteki<br />Ling-en Hsia<br />
  2. 2. Vienot (1995,1999) & Bouton (2002) reports<br />Initiativeof the AFEP & MEDEF<br />PublicLimitedCompany (S.A.) operatingwithBoard of directors (BoD)<br />Referenceframe<br />
  3. 3. OBJECTIVES<br />Specifyprinciplesfor a goodgovernance and fortransparency<br /><ul><li>enhancethemanagement and improvethecompanyimage in thefinancialmarket and thepublic sector</li></li></ul><li>BOARD OF THE DIRECTORS<br />colegiateauthorityacting in the social interest of thecompany<br /><ul><li>Missions:</li></ul> - plan outthestrategy<br /> - choosethecorporateofficers<br /> - monitor themanagement<br /> - thequality of theinformationprovided<br />
  4. 4. CHARACTERISTICS OF THE DIRECTORS<br />Honest<br />Skilled<br />Goodunderstanding of thefunctioning<br />Working in theinterest of theshareholders<br />Involved<br />Representtheshareholders as a whole<br />
  5. 5. INDEPENDENT DIRECTORS<br /> Directors who are not owners or managers or any other kind of association.<br />Proportion: <br /> - ½ if no Control Shareholder<br /> - 1/3 otherwise<br />
  6. 6. THE ACCESS TO THE INFORMATION OF THE DIRECTORS<br /><ul><li> Useful information for the directors
  7. 7. Communication of the chairman and the CEO
  8. 8. Communication of the companies</li></li></ul><li>THE DURATION OF THE FUNCTIONS OF THE DIRECTORS<br />The mandate of four years to the maximum.<br />Avoid a repetition<br />Beginning and the expiry date of the mandate<br />
  9. 9. THE BOARD COMMITTEES<br />The number and the structure of the committees depend on each board.<br /><ul><li>The check of accounts,
  10. 10. The selection of the auditors,
  11. 11. Payment and “stock options” policy,
  12. 12. The appointment of the directors and corporate officers.</li></li></ul><li>FINANCIAL STATEMENTS COMMITTEE<br />One financial statements committee in each board<br />Missions :<br />The essential tasks are:<br />to proceed to the check of accounts<br />to ensure the pertinence of the accounting methods<br />Methods :<br />Auditions of the statutory auditors and finance directors. <br />
  13. 13. COMPENSATION COMMITTEE<br />Composition<br />Operating modalities<br />Remuneration of the directors<br />The “Stock Options” <br />
  14. 14. SELECTION COMMITTEE AND APPOINTMENTS COMMITTEE<br />The Selection or appointments committee role<br />Selection of new directors <br />
  15. 15. PROFESSIONAL ETHICS OF THE DIRECTOR<br />Every director is considered to be bound by the following obligations:<br /><ul><li>Information
  16. 16. Shareholder/Actions.
  17. 17. Interest of the company
  18. 18. Interest of conflict
  19. 19. Professional confidentiality
  20. 20. Attend the meetings</li></li></ul><li>THE REMUNERATION OF THE DIRECTORS<br />The distribution method which total amount is decided by the general assembly is settled by the board of directors. <br />The distribution method must take into account the assiduousness of the directors to the board and in committees.<br />

×