latest collection of “Recommendations on corporate governance”, the AFG reaffirms the principle “one action, one vote” and the importance of the role of general meetings.
This principle makes it possible to prevent significant but minority holders from being able to assert their positions during the vote on resolutions or take control of the company in a « creeping » manner.
She recalls that the board of directors is a strategic body, whose decisions engage the responsibility of its members and shape the future of the company. The board must act in the interest and on behalf of all shareholders and assure them of its neutrality during a takeover bid.
The AFG wishes to strengthen the powers of the general assembly. It recommends in particular that transfers of assets of a significant and/or strategic nature be submitted to a shareholder vote in advance. She also wants the generalization in 2015 of electronic voting for all companies and for all shareholders.
The board must strengthen its role, ahead of general meetings, in determining the remuneration of executive corporate officers. He must ensure the consistency of the level and evolution of their amount, taking into account in particular the economic situation, competition and the company’s social policy.
AFG recommendations on Corporate Governance
