Corporate governance relates to the division of the tasks between the management board, the supervisory board and the shareholders’ meeting. This division stems from national and European legislation and the Dutch corporate governance code. At larger Dutch listed companies this division is in general as follows:
- the management board manages the company and is responsible for the policy and strategy setting;
- the supervisory board supervises the management board and assists the management board with advise; and
- the shareholders’ meeting monitors both the management board and the supervisory board.
According to the recitals of the revised Shareholder Rights Directive “effective and sustainable shareholder engagement is one of the cornerstones of the corporate governance model of listed companies”. A necessary prerequisite for this is that shareholders a) have adequate rights, b) can effectively exercise these rights and c) act as an engaged and responsible shareholder. The latter includes, among other things, casting an informed vote at shareholders’ meetings and the preparedness to enter into a constructive dialogue with listed companies. Within Eumedion, institutional investors from all over the world work together to achieve this.