Oecd legal Instruments

I.G. 
Cross-border co-operation should be enhanced, including through bilateral and multilateral 
arrangements for exchange of information. 
High levels of cross-border ownership and trading require strong international co-operation among 
regulators, including through bilateral and multilateral arrangements for exchange of information or joint 
supervisory actions. International co-operation is becoming increasingly relevant for corporate governance, 
notably when companies or company groups are active in many jurisdictions through both listed and unlisted 
entities, and seek multiple stock market listings on exchanges in different jurisdictions. 
OECD/LEGAL/0413
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I.H. 
Clear regulatory frameworks should ensure the effective oversight of publicly traded 
companies within company groups. 
Well-managed company groups that operate under adequate corporate governance frameworks can help to 
achieve benefits based on economies of scale, synergies and other efficiencies. Nevertheless, company 
groups in some cases may be associated with risks of inequitable treatment of shareholders and 
stakeholders. The prevalence of company groups in many jurisdictions has therefore heightened the need 
for regulators to ensure that the corporate governance framework provides means to effectively monitor 
them. If not, the extensive and complex structures of company groups may pose risks to shareholders and 
stakeholders of publicly traded parent or subsidiary companies within group structures, including through 
abusive related party transactions. Some group companies may also be used to shift funds within the group 
as part of the group’s tax planning strategies, or may use the funds for board/executive remuneration or 
dividend payments.
Company groups operating in different sectors and across borders call for co-operation between domestic 
regulators and across jurisdictions to strengthen the effectiveness and consistency of regulatory oversight. 
Such efforts may include information sharing on the activities of company groups for supervisory and 
enforcement purposes. To this end, jurisdictions are encouraged to develop a practical definition and criteria 
for the oversight of company groups focusing on aspects such as the controlling relationship of group 
companies and their parent, companies’ domicile, and appropriateness of inclusion in consolidated financial 
reporting, among other aspects. In some jurisdictions, companies have adopted protocols and governance 
guidelines at group level as a tool to self-regulate group activity.