Publication details
Importance of the Corporate Governance for Maintaining th Trust of Investors.
| Authors | |
|---|---|
| Year of publication | 2003 |
| Type | Article in Proceedings |
| Conference | Sborník z mez. konference: Future of banking after the year 2000 in the world and in the Czech Republic. Regulation and Supervision of the capital market. |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | corporate governance; shareholder protection; issuers' obligation to inform |
| Description | Over the last year, the Czech Securities Commission has issued a number of rules, which can be applied to minimize the risks and prevent market failures undermining the trust of investors. Since the risk of a failure of authorised representatives and corporate management, the risk of fraud and risk of an improper instrument being offered are among major risks dangerous to the investors, the Czech Securities Commission has adopted a Corporate Governance Code based on the OECD corporate governance principles. The current practice of corporations indicates that the awareness and application of corporate governance principles have not yet taken root in the Czech business environment. The paper is concerned with a concise definition of these principles. Without their knowledge, correct understanding is unthinkable of the newly adopted laws necessary to implement the EU directives requiring continuous and periodic transparency from the issuers and holders of securities accepted for trading in a regulated market. The current transparency requirements are set forth in the Council Directive 2001/34 EC. In compliance with the requirements of this directive, the Czech Securities Commission prefers in the rules adopted particularly periodic-reporting requirements and stricter requirements calling for publishing ad hoc, that is, price sensitive information. |
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