A corporate governance model for Europe: Is diversity sustainable?
This lunchtime seminar discussed the long standing question of whether there is one best practice in terms of corporate governance and what the implications for EU policy making should be. The discussion kicked off with a presentation by Professor Ronald Gilson who commented on the book ‘The Nordic Corporate Governance Model’ which was presented at the event. The discussant agreed that the Nordic corporate governance model was successful and serves as a proof that not only dispersed ownership models can be successful.
The debate showed that diversity in corporate governance models is not only sustainable but also desirable, since companies at different stages in their life cycle and in different industries require different corporate governance models. Policy makers should hence not try to harmonize the governance models but try to strengthen two aspects which were identified as being crucial for all types of governance models: Transparency and the protection of minority shareholder rights.