What is corporate governance

Corporate governance is a term used for rules, processes, or laws by which (listed) companies are operated, regulated, and controlled. It also refers to internal and external factors as defined by the Management Board, shareholders or the corporation's constitution, as well as to stakeholders (customers, employees, NGOs) and government regulations.

Eumedion defines corporate governance as:
The system of practices applied by a company in dealing with the stakeholders directly involved with the company and its business – in particular executive and supervisory directors and providers of capital – comprising a number of rules for good governance and supervision, and rules on the allocation of tasks, responsibilities and powers, leading to a balance of influence among those involved with the company and its business.

A basic principle in this respect is that executive and supervisory directors must be prepared to render account to shareholders for the performance of their tasks. These practices have been codified in the Dutch Corporate Governance Code.

It is the objective of Eumedion to maintain and further develop good corporate governance on the basis of the responsibility of institutional investors established in the Netherlands, and to advance the acceptance of and compliance with generally accepted corporate governance standards by listed companies and institutional investors in the Netherlands and Europe in particular.