Ministers agreed at the May meeting that effective enforcement of corporate governance rules is essential and they determined to improve the rules to enhance transparency and accountability and so strengthen investor confidence and market stability. They also stressed that governments and supervisory bodies need to be vigilant to ensure that financial standards, regulations and market surveillance protect the interests of stakeholders.

OECD ministers adopted the non-binding Principles of Corporate Governance in 1999. The principles are intended to serve as a reference point for countries’ efforts to evaluate and improve their own legal, institutional and regulatory framework for corporate governance. The OECD is co-operating with the World Bank to promote corporate governance reform efforts worldwide, using the Principles of Corporate Governance as a benchmark.

© OECD Observer No 233, August 2002