13 February 2008

AMF 2007 Report on Corporate Governance and Internal Control

AMF published its fourth report on corporate governance and internal control procedures in companies making public offerings.

The AMF finds that the overall quality of the information provided in 2007 with regard to the 2006 financial year is better. Also, companies have made efforts to improve their disclosures regarding internal control, with more information about their risk management systems and the assessment of their internal control procedures.

The AMF recommends application of the reference framework and application guide that it published in January 2007 for financial years starting on or after 1 January 2007. This recommendation is confined to companies traded on Eurolist A in Paris. For other companies, the AMF put forward a simplified application guide for the reference framework on 9 January 2008.

The AMF encourages companies to apply the AFEP/MEDEF recommendations on executive pay in January 2007. This applies to the recommendations dealing with transparency so that companies provide full disclosure to shareholders, not only with regard to the compensation paid to individual executives, but also on the overall cost of senior executives for the group, along with the policy used to determine their compensation.

Press release

Report

© Graham Bishop