The conception of corporate governance in the European Union

Abstract

In the last decade of 20th century when markets became more global and it showed up the growing trend of companies to operate cross border in the markets, when it became possible for companies to choose national legal system that regulate corporate governance, it was started to pay more attention to corporate governance issues. The background to the policymaking of corporate governance questions in the European Union begins with the understanding that harmonization of the rules relating to the company law and corporate governance is one of the essential factors for creating a Single Market. A dynamic and flexible corporate governance framework is necessary for building an integrated European capital market and for maximizing the benefits of enlargement for all the Member States. When there are many discussions about the European Union decisions in the field of corporate governance and about the differences of the corporate governance systems in the Member States, it is not enough paying attention to the systematical analysis of the reasons that caused these differences in the corporate governance systems, and influence of these differences to the current content and conception of the corporate governance in the European Union. [...]