- 13 May 2019
On 9 May 2019 the Belgian Corporate Governance Committee published the 2020 version of the Corporate Governance Code for listed Belgian companies.
The new Code will enter into effect on 1 January 2020, simultaneously with the new Belgian Companies Code, which was adopted on 23 March and published on 4 April.
The new Code focuses on the company’s long-term value creation, taking account of the interests of all shareholders and other stakeholders.
The new Code builds on the new management model for listed companies prescribed by the new Belgian Companies Code, which can either be ‘monistic’ (one-tier Board of Directors) or ‘dualistic’ (two-tier Supervisory Board and Management Board). See our newsletter on the new law.
The most striking provisions of the new Code concerning directors’ and executives’ remuneration are:
The provisions of the Code are still based on a “comply or explain approach”, i.e., listed companies are not obliged to implement them, but should explain why if they do not. The new Code also contains recommendations for an increased level of detail of such explanations.