Denmark looks to Stewardship Code for growth

Troels Lund Poulsen, the Danish minister for business and growth has tasked the Komitéen for god Selskabsledelse (Committee on Corporate Governance) with preparing a set of recommendations for corporate governance for institutional investors. The Code will ask for investors to ensure they focus on “healthy, long-term business operations” to ensure that Danish companies are as driven as possible.

According to the Erhvervs- og Vækstministeriet (Ministry for Business and Growth), the inspiration for the recommendations comes from the FRC’s 2010 Stewardship Code which it believes has helped increase investor participation in British companies. “It will be beneficial for both investors and businesses, if, for example, pension funds show a more visible engagement with those businesses they invest in,” said Poulsen in his announcement.

As part of the proposals, the Committee will be expanding the board by up to two additional members specifically with investor experience. The Chair of the Committee, Lars Frederiksen is supported by Dorrit Vanglo, CEO of LD, the Danish national pension fund.

 

 

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