Code of Best Practice for Corporate Governance

The Code of Best Practice is a product of the Committee on Corporate Governance, which was founded as a non-government body in March 1999. The Committee was composed of fourteen members from the fields of business, finance, accounting and law, along with an advisory group of thirteen experts. The Code consists of five sections and recommendations: Preamble, Shareholders, the Board of Directors, Audit Systems, Stakeholders, and Management Monitoring by the Market. The Code is primarily intended for listed companies. Non-listed firms, however, are also encouraged to follow the Code voluntarily. The Code has been prepared on the assumption that circumstances surrounding each corporation are different from others and are also continuously changing. Many of the principles and recommendations included in the Code have therefore been rendered quite general and flexible. The Code is scheduled to be reviewed and revised regularly to accommodate changing circumstances.