Regulations and Strategies for Corporate Governance

Sarbanes-Oxley Act
Passed in 2002 . Specifically toward the structures of U.S. corporations. Protecting investors and establishing guidelines for financial reporting. Regulations are legally binding for publicly listed businesses that are domestic to the United States and foreign companies traded on U.S. stock exchanges.
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Applying the Key Principles of SOX to All Organizations

a document of accounting best principles. three integral principles: integrity, reliability, and accountability. Integrity: completeness of the financial records. Reliability: accurate information. Accountability: someone must be held accountable for the establishment of controls and the consequences should those controls fail.
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Regulations for Shareholder Proposals

The 1934 Securities Exchange Act governs the process by which shareholders are able to submit proposals. shareholders are eligible to submit proposals if they have held 1% of the companys voting stock for a term of one year or more. The guidelines also limit shareholders to one proposal per meeting.
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Meeting Proposal Requirements

The shareholder submitting the proposal must own 1% of the companys shares at the time of submission and have owned that stock for at least one year. The submitting shareholder must continue to own at least 1% of the companys shares through the date on which the proposal is voted on. Each shareholder may submit only one proposal per shareholder meeting.
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Meeting Proposal Requirements

Proposals must adhere to a 500-word limit. Proposals must be submitted prior to the submission deadline. Shareholder proposals must relate to activities that account for more than 5% of the corporations total revenue and assets.

Organization for Economic Cooperation and Development

(OECD) offers membership for 30 countries and has a relationship with over 70 others. Involved with other economic areas, including nongovernmental organizations. facilitates policy discussion, generates statistics, and publishes guidelines, such as its Principles of Corporate Governance. global guide for Corporate Governance efforts.
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Principles
1. Framework- establishing a foundational framework for Corporate Governance. 2. Shareholder rights 3. Stakeholder considerations- fair treatment. 4. Transparency 5. Responsibilities of the board

Member Countries of the OECD

Australia June 7, 1971 Austria September 29, 1961 Belgium September 13, 1961 Canada April 10, 1961 Czech Republic December 21, 1995 Denmark May 30, 1961 Finland January 28, 1969 France August 7, 1961 Germany September 27, 1961
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Member Countries of the OECD

Hungary May 7, 1996 Iceland June 5, 1961 Ireland August 17, 1961 Italy March 29, 1962 Japan April 28, 1964 Korea December 12, 1996 Luxembourg December 7, 1961 Mexico May 18, 1994
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Member Countries of the OECD

Netherlands November 13, 1961 New Zealand May 29, 1973 Norway July 4, 1961 Poland November 22, 1996 Portugal August 4, 1961 Slovak Republic December 14, 2000 Spain August 3, 1961 Sweden September 28, 1961 Switzerland September 28, 1961 Turkey August 2, 1961 United Kingdom May 2, 1961 United States April 12, 1961

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