Towards global convergence in corporate governance: An assessment of the current situation

Abstract

This paper highlights the remarkable convergence that has happened throughout the world in the field of corporate governance since the Cadbury report in the UK and the Vienot report in France, which makes the application of the Sarbanes–Oxley Act of 2002 to non-US companies particularly strange. But the difference is not and never has been so much at the level of principles, and it is in the implementation of regulatory principles that the major divergence of approaches between countries lies. No country has the monopoly on the best rules, but most now recognise that the role of the Board of Directors requires a mix of independence, relevant experience and expertise that together form the indispensable key to the efficient functioning of capital markets: investor confidence. The main issue will be a convergence in implementation through a reinforcement of regional and international cooperation, particularly through the enhancement of the International Organization of Securities Commissions.