10 December 2003

Dutch release corporate governance code

Dutch release corporate governance code:

Seattle Post-Intelligencer: AP - Business

AMSTERDAM, Netherlands -- The Netherlands unveiled a new set of rules Tuesday to help corporate boards prevent executives from abusing their power.

The code was drawn up by a panel of business executives at the request of the Finance Ministry to reform governance after a number of crises at Dutch companies.

Its work was made urgent by the accounting scandal at the retail giant Ahold NV, often seen as a European parallel to Enron.

The code requires corporate board members to undergo 'training and education' to help them do their job properly, and limits the number of boards they may serve on.

Compliance with the code is voluntary, but companies choosing to ignore it should explain why to shareholders."

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