Corporate governance

Introduction

During the past year, the subject of corporate governance has been subject of some tempestuous developments, both nationally and internationally. This development was partly prompted by the credit crunch and the aim to restore diminished confidence in the financial sector.

In 2009, after the Dutch corporate governance code (the Code) was amended at the end of 2008, the Netherlands Bankers’ Association (NVB), De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) made a number of recommendations. These recommendations have been incorporated in the Banking Code and the Principles for a controlled remuneration policy.

The reports of the Monitoring Committee resulted in a corporate governance bill which was submitted in 2009. The purpose of this legislative proposal is to make a contribution to strengthening the Dutch corporate governance system. The legislative proposal provides for a regulation to report intentions for shareholders in the event of a certain controlling interest.

The recommendations incorporated in the Code, the Banking Code and the Principles for a controlled remuneration policy will be outlined in this chapter. The Code has a legal basis in that a listed company must include in its annual report information about compliance with the principles and best practice stipulations of the Code, aimed at the executive or supervisory board of the company. As a modern and innovative company, BinckBank largely endorses the widely supported basic principles referred to in the Code.