commiss recommend februari role execut supervisori director list compani committe supervisori board text eea relev ec commiss european commun regard treati establish european commun indent articl thereof commun adopt commiss present action plan quot modernis compani law enhanc corpor govern european union plan move forward quot main object action plan strengthen sharehold right protect employe creditor parti compani deal adapt compani law corpor govern rule appropri categori compani foster effici competit busi special attent specif cross border issu resolut april european parliament welcom action plan express strong support initi announc european parliament call commiss propos rule elimin prevent conflict interest stress list compani audit committe function includ overse extern auditor independ object effect execut supervisori director recruit compani varieti purpos import role overse execut manag director deal situat involv conflict interest vital foster role order restor confid financi market member state invit adopt measur applic list compani defin compani secur admit trade regul market commun implement recommend member state specif collect invest undertak corpor type prevent type collect invest undertak subject unnecessarili unequ treatment collect invest undertak defin council direct eec decemb coordin law regul administr provis relat undertak collect invest transfer secur ucit direct set specif govern mechan order prevent unnecessarili unequ treatment collect invest undertak corpor type subject harmonis commun level member state account extent harmonis collect invest undertak subject equival govern mechan view complex issu stake adopt detail bind rule necessarili desir effici achiev object pursu corpor govern code adopt member state tend reli disclosur encourag complianc base quot compli explain quot approach compani invit disclos compli code explain materi departur approach enabl compani reflect sector enterpris specif requir market assess explan justif provid view foster role execut supervisori director member state invit step introduc nation level set provis base principl set recommend list compani basi compli explain approach pursuant legisl member state decid quot compli explain quot approach compani requir explain practic refer set design practic recommend free basi relev recommend develop market particip measur adopt member state line recommend aim fundament improv corpor govern list compani object relev protect investor actual potenti compani list commun incorpor member state measur cover compani incorpor countri list commun presenc independ repres board capabl challeng decis manag wide consid mean protect interest sharehold stakehold compani dispers ownership primari concern make manag account weak sharehold compani control sharehold focu make compani run suffici take account interest minor sharehold ensur adequ protect parti relev case formal board structur compani manag function subject effect suffici independ supervisori function independ understood absenc materi conflict interest context proper attent paid threat aris fact repres board close ti competitor compani order ensur manag function submit effect suffici independ supervisori function supervisori board compris suffici number commit execut supervisori director plai role manag compani group independ free materi conflict interest view legal system exist member state proport supervisori board member made independ director defin precis commun level supervisori role execut supervisori director commonli perceiv crucial area potenti conflict interest manag high matter direct respons sharehold nomin director remuner director audit foster role execut supervisori director area encourag creation supervisori board committe respons nomin remuner audit principl prejudic power gener meet supervisori board statutori decis make author collegi bodi collect account perform duti supervisori board power determin number structur committe deem facilit work committe principl substitut supervisori board gener rule nomin remuner audit committe make recommend aim prepar decis supervisori board supervisori board preclud deleg part decis make power committe consid permiss nation law supervisori board remain fulli respons decis field compet identif candid fill unitari dual board vacanc rais issu relev select execut supervisori director overse manag relev continu offic manag nomin committe compos independ execut supervisori director leav room nomin committe execut supervisori director meet independ criteria leav room execut manag director compani nomin committe creat unitari board long execut manag director form major committe approach member state respect bodi respons appoint remov director role nomin committe creat supervisori board essenti make supervisori board plai role appoint remov process power tabl propos make decis defin nation law role perform object profession nomin committe essenti make recommend supervisori board respect appoint remov director bodi compet nation compani law area remuner corpor govern code adopt member state tend focu primarili remuner execut manag director potenti abus conflict interest essenti locat code recognis consider board level remuner polici senior manag final issu stock option grant special attent approach member state respect bodi respons set remuner director role remuner committe creat supervisori board essenti make supervisori board plai role remuner set process power tabl propos make decis defin nation law role perform object profession remuner committe essenti make recommend supervisori board respect remuner issu decis bodi compet nation compani law kei respons supervisori board ensur financi report relat inform dissemin compani present accur complet pictur compani posit monitor procedur establish evalu manag risk context corpor govern code assign audit committe essenti role assist supervisori board fulfil duti member state respons attribut wholli partli corpor bodi extern supervisori board provid audit committe creat supervisori board gener rule make recommend supervisori board respect audit issu function perform structur extern supervisori board equal effect order execut supervisori director plai effect role background suffici time job addit suffici number meet independ criteria appoint execut supervisori director adequ inform provid issu inform updat suffici frequenc respect qualif director corpor govern code insist qualifi individu board time recognis definit constitut proper qualif left compani qualif depend inter alia activ size environ met board issu rais concern compet audit committe specif knowledg deem indispens supervisori board determin desir composit audit committe evalu period devot specif attent experi committe respect commit director corpor govern code seek make director devot suffici time duti code limit number directorship held compani posit chairman execut manag director recognis demand execut supervisori director precis number directorship accept vari wide involv requir director vari wide depend compani environ situat director undertak strike proper balanc engag gener corpor govern code adopt member state recognis signific proport execut supervisori director independ free materi conflict interest independ understood absenc close ti manag control sharehold compani absenc common understand independ precis entail provid gener statement describ gener object provis made cover exhaust number situat involv relationship circumst recognis gener materi conflict interest member state duli introduc nation level criteria supervisori board determin constitut independ princip issu supervisori board determin supervisori board appli independ criteria focu substanc form view import attach role execut supervisori director respect restor confid gener develop sound corpor govern practic step implement recommend member state monitor close recommend section scope definit scope member state invit step introduc nation level set provis role execut supervisori director committe supervisori board list compani quot compli explain quot approach legisl instrument suit legal environ due account specif collect invest undertak corpor type cover direct eec member state specif collect invest undertak corpor type cover direct sole purpos invest monei rais investor diversifi rang asset seek legal manag control issuer underli invest member state decid quot compli explain quot approach compani requir explain practic refer set design practic recommend requir compani annual recommend compli case recommend requir continu natur part account period complianc occur explain substanti specif manner extent reason materi complianc consider principl set recommend member state account function characterist assign member state committe creat supervisori board propos recommend duli account right duti relev corpor bodi defin nation law member state allow choos part creation supervisori board committe characterist advoc recommend structur extern supervisori board procedur structur procedur mandatori compani nation law practic recommend nation level quot compli explain quot approach function equival equal effect respect list compani incorpor member state set provis introduc member state cover list compani incorpor territori respect list compani incorpor member state set provis introduc member state cover list compani primari list regul market establish territori definit purpos recommend quot list compani quot mean compani secur admit trade regul market mean direct ec member state quot director quot mean member administr manageri supervisori bodi compani quot execut director quot mean member administr bodi unitari board engag daili manag compani quot execut director quot mean member administr bodi unitari board compani execut director quot manag director quot mean member manageri bodi dual board compani quot supervisori director quot mean member supervisori bodi dual board compani section ii presenc role execut supervisori director supervisori board presenc execut supervisori director administr manageri supervisori bodi includ total balanc execut manag execut supervisori director individu small group individu domin decis make part bodi present past execut respons supervisori board chairman stand abil exercis object supervis unitari board ensur role chairman chief execut separ case unitari dual board option chief execut immedi chairman supervisori board case compani choos combin role chairman chief execut immedi appoint chairman supervisori board chief execut accompani inform safeguard put place number independ director suffici number independ execut supervisori director elect supervisori board compani ensur materi conflict interest involv director properli dealt organis board committe board organis suffici number independ execut supervisori director plai effect role kei area potenti conflict interest high end subject point nomin remuner audit committe creat supervisori board board plai role area nomin remuner audit nation law take account annex role committe vi vi supervisori board nomin remuner audit committe make recommend aim prepar decis supervisori board primari purpos committe increas effici supervisori board make decis base due consider organis work view ensur decis take free materi conflict interest creation committe intend principl remov matter consid purview supervisori board remain fulli respons decis field compet term refer committe creat drawn supervisori board permiss nation law deleg decis make power explicitli declar properli made public fulli transpar flexibl set committe compani make function assign nomin remuner audit committe carri compani group function fit creat fewer committe situat compani give clear explan reason chosen altern approach approach chosen meet object set separ committe compani supervisori board small function assign committe perform supervisori board provid meet composit requir advoc committe adequ inform provid respect situat nation provis relat board committe respect role oper transpar appli relev supervisori board evalu supervisori board year supervisori board carri evalu perform encompass assess membership organis oper group evalu compet effect board member board committe assess board perform perform object set transpar commun supervisori board make public year part inform disclos compani annual corpor govern structur practic adequ inform intern organis procedur applic activ includ indic extent evalu perform supervisori board led materi chang supervisori board ensur sharehold properli inform affair compani strateg approach manag risk conflict interest role director commun engag sharehold delin section iii profil execut supervisori director appoint remov execut supervisori director appoint term subject individu elect maximum interv determin nation level view enabl develop experi suffici frequent reconfirm posit remov remov easier execut manag director qualif order maintain proper balanc term qualif possess member supervisori board determin desir composit relat compani structur activ evalu period supervisori board ensur compos member requir divers knowledg judgement experi complet task properli member audit committe collect recent relev background experi financ account list compani compani activ member supervisori board offer tailor induct programm cover extent respons compani organis activ supervisori board conduct annual review identifi area director updat skill knowledg appoint director propos disclosur made compet relev servic supervisori board enabl market public assess compet remain time supervisori board disclos year profil board composit inform compet individu director relev servic supervisori board commit director devot duti time attent undertak limit number profession commit directorship held compani extent proper perform duti assur appoint director propos signific profession commit disclos board inform subsequ year board collect data commit make inform annual report independ director consid independ free busi famili relationship compani control sharehold manag creat conflict interest impair judgement number criteria assess independ director adopt nation level take account guidanc set annex ii identifi number situat reflect relationship circumst recognis gener materi conflict interest determin constitut independ fundament issu supervisori board determin supervisori board director meet criteria laid nation level assess independ director consid independ ow specif circumst person compani convers appli proper inform disclos conclus reach supervisori board determin director regard independ appoint execut supervisori director propos compani disclos consid independ criteria laid nation level assess independ director met compani disclos reason director independ compani disclos annual director independ criteria laid nation level assess independ director met year compani disclos reason director independ ensur accuraci inform provid independ director compani requir independ director independ period confirm section iv final provis follow member state invit measur promot applic june principl set recommend notifi commiss measur accord recommend order enabl commiss monitor close situat basi assess measur addresse recommend address member state brussel februari commiss charli mccreevi member commiss final oj direct amend direct ec european parliament council oj annex provid addit guidanc interpret principl set recommend annex committe supervisori board common featur size committe creat supervisori board compos member compani small supervisori board exception compos member composit chairmanship membership committe decid due regard ensur committe membership refresh undu relianc individu term refer exact mandat committe creat term refer drawn supervisori board resourc compani ensur committe provid suffici resourc discharg duti includ obtain offic compani inform seek independ profession advic issu fall area compet attend committe meet view ensur autonomi object committe director committe member entitl attend meet invit committe committe invit requir offic expert attend transpar committe discharg duti set term refer ensur regularli report supervisori board activ result term refer set committe creat explain role author deleg supervisori board permiss nation law made public year part inform disclos compani annual corpor govern structur practic compani make public annual statement exist committe membership number meet attend year main activ audit committe confirm satisfi independ audit process describ briefli step reach conclus chairman committe commun directli sharehold circumst happen spell committe term refer nomin committe creation composit nation law supervisori board plai role make decis make propos consider corpor bodi process appoint remov director nomin committe set supervisori board nomin committe compos major independ execut supervisori director compani deem nomin committe compris minor independ member chief execut offic member committe role nomin committe identifi recommend approv supervisori board candid fill board vacanc aris nomin committe evalu balanc skill knowledg experi board prepar descript role capabl requir appoint assess time commit expect period assess structur size composit perform unitari dual board make recommend supervisori board regard period assess skill knowledg experi individu director report supervisori board properli issu relat success plan addit nomin committe review polici manag board select appoint senior manag oper nomin committe propos made relev parti includ manag sharehold chief execut offic adequ consult entitl submit propos nomin committe deal issu relat execut manag director senior manag perform duti nomin committe form resourc deem includ extern advic advertis receiv fund compani effect remuner committe creation composit nation law supervisori board plai role make decis make propos consider corpor bodi process set remuner director remuner committe set supervisori board remuner committe compos exclus execut supervisori director major member independ role respect execut manag director committe make propos approv supervisori board remuner polici execut manag director polici address form compens includ fix remuner perform relat remuner scheme pension arrang termin payment propos relat perform relat remuner scheme accompani recommend relat object evalu criteria view properli align pai execut manag director long term interest sharehold object set supervisori board compani make propos supervisori board individu remuner attribut execut manag director ensur consist remuner polici adopt compani evalu perform director concern committe properli inform total compens obtain director compani affili group make propos supervisori board suitabl form contract execut manag director assist supervisori board overse process compani compli exist provis disclosur remuner relat item remuner polici appli individu remuner attribut director respect senior manag defin supervisori board committe make gener recommend execut manag director level structur remuner senior manag monitor level structur remuner senior manag basi adequ inform provid execut manag director respect stock option share base incent grant director manag employe committe debat gener polici grant scheme stock option make relat propos supervisori board review inform provid topic annual report sharehold meet relev make propos supervisori board choic grant option subscrib share grant option purchas share reason choic consequ choic oper remuner committe consult chairman chief execut view relat remuner execut manag director remuner committe avail consult view obtain inform market standard remuner system committe respons establish select criteria select appoint set term refer remuner consult advis committe receiv fund compani effect audit committe composit audit committe compos exclus execut supervisori director major member independ role respect intern polici procedur adopt compani audit committe assist supervisori board monitor integr financi inform provid compani review relev consist account method compani group includ criteria consolid account compani group review annual intern control risk manag system view ensur main risk includ relat complianc exist legisl regul properli identifi manag disclos ensur effect intern audit function make recommend select appoint reappoint remov head intern audit depart depart budget monitor respons manag find recommend compani intern audit function review annual respect extern auditor engag compani audit committe make recommend supervisori board relat select appoint reappoint remov extern auditor bodi compet nation compani law term condit engag monitor extern auditor independ object review audit firm complianc applic guidanc relat rotat audit partner level fee paid compani relat regulatori requir natur extent audit servic review base inter alia disclosur extern auditor fee paid compani group audit firm network view prevent materi conflict interest aris committe set appli formal polici accord principl guidanc provid commiss recommend ec type audit servic exclud permiss review committe permiss referr committe review effect extern audit process respons manag recommend made extern auditor manag letter investig issu give rise resign extern auditor make recommend requir action oper compani provid induct programm audit committe member subsequ relev train ongo time basi committe member provid full inform relat compani specif account financi oper featur manag inform audit committe method account signific unusu transact account treatment open approach respect attent paid exist justif activ carri compani offshor centr special purpos vehicl audit committe decid chief execut offic chairman manag board chief financi offic senior employe respons financ account treasuri matter intern auditor extern auditor attend meet committe entitl meet relev person presenc execut manag director wish intern extern auditor addit maintain effect work relationship manag guarante free access supervisori board effect audit committe act princip contact point intern extern auditor audit committe inform intern auditor work programm receiv intern audit report period summari audit committe inform extern auditor work programm obtain report extern auditor describ relationship independ auditor compani group committe obtain time inform issu aris audit audit committe free obtain advic assist legal account advisor deem carri duti receiv fund compani effect audit committe review process compani compli exist provis possibl employe report alleg signific irregular compani complaint anonym submiss independ director ensur arrang place proportion independ investig matter follow action audit committe report supervisori board activ month time yearli half yearli statement approv propos submit sharehold consider nomin committe decid recommend candid approv supervisori board prevent sharehold propos candid directli gener meet tabl draft resolut effect nation law oj annex ii profil independ execut supervisori director list comprehens threat director independ relationship circumst relev determin vari extent member state compani practic respect evolv time number situat frequent recognis relev help supervisori board determin execut supervisori director regard independ wide understood assess independ director base substanc form context number criteria supervisori board adopt nation level criteria tailor nation context base due consider situat execut manag director compani compani posit previou year employe compani compani posit previou year execut supervisori director belong senior manag elect supervisori board context system worker represent recognis law provid adequ protect abus dismiss form unfair treatment receiv receiv signific addit remuner compani compani fee receiv execut supervisori director addit remuner cover particip share option perform relat pai scheme cover receipt fix amount compens retir plan includ defer compens prior servic compani provid compens conting continu servic repres control sharehold control determin refer case mention articl council direct eec year signific busi relationship compani compani directli partner sharehold director senior employe bodi relationship busi relationship includ situat signific supplier good servic includ financi legal advisori consult servic signific custom organis receiv signific contribut compani group year partner employe present extern auditor compani compani execut manag director compani execut manag director compani execut supervisori director signific link execut director compani involv compani bodi serv supervisori board execut supervisori director term altern year nation law normal term small length close famili member execut manag director person situat refer point independ director undertak maintain circumst independ analysi decis action seek accept unreason advantag consid compromis independ express opposit event find decis supervisori board harm compani supervisori board made decis independ execut supervisori director reserv draw consequ resign explain reason letter board audit committe relev bodi extern compani oj direct amend direct ec european parliament council oj