On Jul. 5, GRE HCMC issued rules on board and corporate governance.
GRE HCMC issued a series of questions and answers relating to provisions of art. 1 to 24 of law 4706/2020 that apply to corporate governance following law change in 2020.
Follows GRE GVT Mar. 2020 proposed rules on corporate governance, see #73867.
Overview
FAQ helps companies to comply with current law in terms of adoption and compliance.
The material relates to the requirements of the board of directors and the general assembly, as well as any remuneration and nomination committees in the company.
It include clarification on the role of chief executive officer (CEO) and equivalents and considers the roles of the independent non-executive members of board of directors.
The matter also considers the various internal and external reporting requirements and the role and requirements for auditors in respect of all of the companies concerned.
Further consideration is also given to the internal control system framework and this includes reference to the auditors' evaluation of such a system within each company.
Jul. 19, 2021 In Force
On Jul. 16, 2021, GRE HCMC issued a press release stating that the provisions of law 4706/2020 on corporate governance will come into effect on Monday Jul. 19, 2021.
HCMC calls on all listed companies to follow not just the letter, but also spirit of law.
Provides information to assist firms, Q&As on corporate governance provisions and for the audit committee, clarifications and recommendations on firms' general meetings.
Feb. 2022 FAQs
On Feb. 22, 2022, GRE HCMC issued FAQs regarding the provisions of Art 44 of Law 4449/2017, and FAQs on Arts 1-24 of Law 4706/2020 regarding corporate governance.
Mar. 2023 Updated FAQs
On Mar. 23, 2023, GRE HCMC updated FAQs relating to corporate governance rules.
The document sets out clarifications and recommendations regarding implementation of Law 4706/2020, Board decision 1/891/30.09.2020, and art. 44 of Law 4449/2017.
Document dated Mar. 20, 2023, received Mar. 23, and summarized on Mar. 26, 2023.
According to Dec 1/891/30.09.2020, amended by Dec 2/917/17.06.2021, first internal control system evaluation by an independent evaluator must be completed by Mar. 31, 2023: reference date Dec. 31, 2022; reference period Jul. 17, 2021–Dec 31, 2022.
Mar. 2024 Corporate Governance System Evaluation
On Mar. 5, 2024, GRE HCMC issued highlights, clarifications and recommendations re the actions of listed companies for the evaluation of the corporate governance system.
The first evaluation is expected to be completed by the beginning of 2025 at the latest.
With a maximum reference period Jul. 17, 2021–Dec. 31, 2024; related report is to be included in the Corporate Governance Statement of the 2024 Annual Financial Report.
The Board of Directors of listed companies is responsible for evaluating the Corporate Governance System under each company's procedure, internally or by external means.
Under art 13, para 1, of Law 4706/2020, the corporate governance system must include at least an effective Internal Control System, including risk management.
And regulatory compliance systems; procedures for situations of conflict of interest.
Effective communication mechanisms with shareholders, in order to facilitate the exercise of their rights and active dialogue with them (shareholder engagement).
And remuneration policy contributing to the company's business strategy, ESG goals.
Jun. 2024 Implementation Report
On Jun. 10, 2024, GRE HCMC published report of Apr. 2024 on the course of implementation of the corporate governance framework of art 1-24 of Law 4706/2020.
Under art 92, para 6 of Law 4706/2020, GRE HCMC must prepare, every 2 years, a report on the implementation of art 1-24 and suggest modifications to the framework.
Chapter 1 presents GRE HCMC's actions i.e. the regulatory decisions and guidelines.
Re specific matters provided for by Law 4706/2020, in order to contribute to the timely and appropriate preparation of liable companies to comply and to avoid ambiguities.
Chapter 2 presents the course of compliance of the obliged companies with the law.
Chapter 3 presents a summary of the main positions of the market players re the need for any amendment of articles 1-24 of Law 4706/2020 and the GRE HCMC evaluation.
Chapter 4 briefly presents GRE HCMC's proposals on articles 1-24 of Law 4706/2020.
Regulators
GRE HCMC
Entity Types
Auditor; Bank; Corp
Reference
PR, 6/10/2024; Rp, 4/1/2024; PR 604, 3/5/2024; FAQ 3/23/2023; FAQ 2/22/2022; PR, FAQ, Gd, 7/16/2021; FAQ 7/5/2021; ESG; Law 4706/2020; Law 4449/2017; Dec 1/891/30.09.2020; Dec 2/917/17.06.2021
