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07 May 2015

ACCA takes note of JURI vote on long-term shareholders engagement

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ACCA takes note of the adoption by the JURI of the report on a legislative proposal to enhance shareholders' rights and long-term engagement, as well as corporate transparency prepared by MEP Cofferati.

Jason Piper, ACCA Tax and Business Law manager, said: 'The wider concept of corporate governance, as promoted by ACCA, includes ensuring that boards, as representatives of the enterprise’s owners, protect resources and allocate and direct them to make sustained and sustainable progress towards the enterprise’s defined purpose. It also includes ensuring that those governing and managing an enterprise account appropriately to its stakeholders on their performance in relation to that defined purpose, and last but not least, making sure  that shareholders and, where appropriate, other stakeholders can and do hold boards to account for their performance.'

Jason Piper, further commenting on the adoption of the amendments on Country-by-Country Reporting (CBCR), namely on tax matters, explains that: 'While ACCA is of course in favour of enhancing transparency, it should be nevertheless noted that the industries that already report under CBCR- ie extractive and forestry as well as financial institutions- have their own distinguishing features which allow authorities and investors to sensibly compare results. The risk with CBCR, imposed across every sector in every economy under a one-size-fits-all policy, is that there will be some sectors and business models that it really doesn’t fit all well. To be relevant, the new rules need to be better than what we have now, and not just an extra disclosure that is of no added-value to transparency. We would urge decision-makers to listen to the evidence and take the time to improve the tax system, not just change it. It is important that any domestic regulation introduced under this revised directive takes account of all the available evidence in a measured fashion.'

'ACCA believes there are broad links between corporate governance, performance and sustainable value creation and sees shareholder rights as only one piece of the wide promotion of a healthy corporate culture. Good corporate governance is necessary to promote the interest of wider society, not just that of shareholders' Jason Piper concludes. 

Press release

© ACCA - Association of Chartered Certified Accountants

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