New Dutch Corporate Governance Code - The Highlights

On 8 December 2016, the Monitoring Committee Corporate Governance Code published the new Dutch Corporate Governance Code, taking into account the feedback received from various stakeholders during a consultation phase.

The new Code applies to any financial year starting on or after 1 January 2017. Every Dutch listed company needs to state in its management report to which extent it complies with the provisions of the Code. If a company does not comply, it has to explain why.

The Code has been significantly revised in both structure and content, and is based on a number of specific themes. It places greater emphasis on long-term value creation and risk management, and it introduces culture as a new element. The Monitoring Committee has simplified the Code by removing overlaps and conflicts with laws and regulations, and it has included new corporate governance developments.