By Anna McLauchlin - 6th May 2004
In an effort to tighten its control on corporate governance following recent European accounting scandals, Brussels has launched a consultation on the independence of company directors.
The European Commission consultation asks interested parties to comment on a set of principles to be reinforced in Europe via a recommendation.
This recommendation would ask national governments to legalise a set of minimum standards for company directors or executives including their commitment and independence.
It would also tackle the need for company boards to oversee directors, making sure they act in the firm's best interests and that boards are more transparent about the reasons for awarding what are often huge bonuses to directors.
"The presence of a series of strong independent directors can help ensure that the interests of all shareholders and other stakeholders are duly taken into account in the preparation of company decisions," Internal Market Commissioner Frits Bolkestein said on Wednesday.
"I encourage all interested parties..to respond. We will listen to them."
Companies, shareholders and regulators have until June 4 to voice their thoughts on the recommendation.
And the commission is expected to publish European guidelines on directors' pay in September.
The consultation can be found under the Further Reading link.
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