NEWS ABOUT CORPORATE GOVERNANCE - August/1999
- US institutional investors are putting steadily greater pressure in demanding better corporate governance practices in companies in which they are shareholders. Daily their involvement and influence increase in the larger companies. A recent “Fortune” article attributes the frequency of certain US CEOs’ failure to successfully administer their organizations, to the “merciless” demands of these institutional investors.
- The International Corporate Governance Network - ICGN, held a most successful Fourth Annual Conference in Frankfurt, Germany from July 7 through 9, 1999. The conference was attended by approximately two hundred and twenty (220) people from over twenty (20) countries, among them the USA, Japan, the Netherlands, France, Italy, Sweden, and Brazil. The speaker at the farewell dinner was Mr. John H. Biggs, President of the Board of Directors of TIAA-CREF, the pension fund with the world’s largest asset portfolio.
- On September 16 through 18, the Family Business Network - FBN, an institution based in Switzerland, comprising captains of industry, business heirs, and professional people connected with family businesses, from all over the world, will hold its Tenth Annual World Conference in Stockholm, Sweden. Thanks to the growing importance of the family business, corporate governance will be a major topic during this event.
- Through its President, Daniel Ioschpe, the Rio Grande do Sul Branch of the IBGC - Instituto Brasileiro de Governança Corporativa (Brazilian Institute of Corporate Governance), is issuing invitations for a lunch meeting on August 26, 1999 in Porto Alegre, at the Palácio do Comércio, Largo Visconde do Cairú, 17, 7th floor. The speaker will be the President of the IBGC, Bengt Hallqvist, who will address the guests on “Corporate Governance or Corporate Disaster“. Further information: tel.: (51) 227 4544.
- In São Paulo, the Estado de São Paulo (São Paulo’s leading daily newspaper) Group and Spencer Stuart held a seminar, entitled “Boards of Directors - A Practical and Updated View”. The Managing Director of the Estado de São Paulo Group, Francisco Mesquita Neto, who opened the meeting which was attended by board directors and other professionals involved in this area, affirmed his opinion that the Board of Directors is essential to modern business management. In turn, consultant, Geraldo Hess pointed to the fact that Brazilian businesses are increasingly directed to more professional boards of directors. In reference to the formation of the Estado Group Board of Directors, consultant, Roberto Teixeira da Costa, himself a member of several boards of directors, said: “This was a step forward since it satisfactorily resolved the inevitable stalemates which are inherent to any family business with several groups of shareholders”. Lastly, Ford President, Antônio Maciel, underscored the importance of a Board of Directors capable and qualified to analyze and project the future of the business, and highlighted total straightforwardness as one of the core features of any board of directors. This, he said, particularly applies to a clear information system for company shareholders.
- An extract from the Principles of Corporate Governance - The Organization for Economic and Cooperation Development - OECD:
- The Mission of the Board of Directors - “ The corporate governance framework should ensure the strategic guidance of the company, the effective monitoring of management by the board, and the board’s accountability to the company and the shareholders ”.
