Corporate Governance and Compliance in Belgium: Key Developments and Trends

The Corporate Governance Committee in Belgium has been at the forefront of promoting good governance practices among listed companies. In its 2023 annual report, the committee highlighted the importance of corporate governance as an ongoing process that requires continuous attention.

Improving Adherence to Corporate Governance Codes

One notable development is the publication of a study on compliance with the 2020 Code, which revealed that listed companies need to improve their adherence to the code’s provisions. The committee has taken steps to raise awareness among listed companies and ensure they are meeting their obligations.

• Key findings:
  • Listed companies need to improve their adherence to corporate governance codes
  • Committee is taking steps to raise awareness among listed companies
  • Ensuring compliance with code provisions is a priority

Promoting Sustainable Value Creation

A new report on sustainable value creation in Belgian listed companies was released, which presented findings on the concept of sustainable value creation and its application in the corporate world. This report is part of an ongoing effort to promote sustainable practices among businesses.

• Key highlights:
  • Report presents findings on sustainable value creation
  • Concept of sustainable value creation applied in the corporate world
  • Efforts to promote sustainable practices among businesses

Legislative Changes

Legislative changes have also had an impact on corporate governance in Belgium. The European Union’s new Directive on corporate sustainability due diligence has come into effect, requiring companies to conduct thorough risk assessments and due diligence on their supply chains.

• Key developments:
  • EU Directive on corporate sustainability due diligence
  • Companies required to conduct thorough risk assessments and due diligence on supply chains

Other Notable Developments

Other notable developments include a law on digitalization that affects the corporate governance of listed companies and a European Directive on gender balance on boards of directors, which aims to increase diversity in leadership positions.

• Key highlights:
  • Law on digitalization affecting corporate governance
  • EU Directive on gender balance on boards of directors

Conclusion

These changes highlight the evolving nature of corporate governance and compliance in Belgium. As the regulatory landscape continues to shift, businesses must adapt and prioritize good governance practices to remain competitive and meet their responsibilities to stakeholders. By staying informed about these developments, companies can navigate the changing environment and contribute to a more sustainable and equitable business ecosystem.

References

• Corporate Governance Committee (2023). Annual Report.
• European Union (n.d.). Directive on corporate sustainability due diligence.