Methods of governance

The freedom of a company should be in accordance with the provisions and be able to explain why it has left a certain practice benefits the company. This is workable in companies where the stakeholders are given active roles.

Statements that stipulate shareholders commitment in governance of the company according to the market should have meaning and be informative. This leaves the shareholder with the role of judging the governance of the company.

 In spite of the EU considerations of making the explain approach flexible and market friendly, some improvements must be made. Monitoring groups can take the mandate of confirming that comply statement is complete and comprehensive.

There should be comply codes in certain markets to reduce exposure of governance deals. The EU has to provide comply codes for national markets, but the member states are supposed to choose the codes.