Oecd legal Instruments

Implementation
2020 Report to the Council 
A 
report
 on the dissemination, implementation, and continued relevance of the Recommendation was
presented to the Council in 2020. The report concluded that the Recommendation is an essential
reference across Adherents for the implementation of effective corporate governance legal and
institutional frameworks. Adherents have legal and regulatory provisions in place to address
recommendations in all six chapters of the Principles across a wide range of issues. Moreover, these
frameworks have been evolving dynamically. The majority of Adherents have amended either their
company law or securities law, or both, in order to increase alignment with the Principles. 
The report also highlighted that effective implementation of the Principles requires a good empirical
understanding of economic realities and adaption to changes in corporate and capital market
developments over time, and therefore encouraged the Corporate Governance Committee to
continue its ongoing monitoring and assessment of both the implementation of the Recommendation
and the impact of economic and market developments on its relevance.
The next reporting to Council is scheduled to take place in 2028. 
OECD/LEGAL/0413
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Methodology for Assessing the Implementation of the G20/OECD Principles of Corporate
Governance
The 
Methodology
 is intended to underpin an assessment of the implementation of the Principles in a
jurisdiction and to provide a framework for policy discussions. The ultimate purpose of an assessment
is to identify the nature and extent of specific strengths and weaknesses in corporate governance, and
thereby underpin policy dialogue that will identify reform priorities leading to the improvement of
corporate governance and economic performance. The Methodology underpins corporate
governance reviews carried out by the Corporate Governance Committee, such as those undertaken
for countries seeking accession to the OECD, as well as for Corporate Governance Reports on
Observance of Standards and Codes (ROSCs) undertaken by the World Bank. 
The Methodology is intended to qualitatively assess jurisdictions against what they could and should
achieve in relation to the Principles and to provide a framework for identifying policy options to
improve corporate governance. Reflecting the Principles, the Methodology places emphasis on
“outcomes” and, therefore, on “functional equivalence”. By the latter is meant that there are many
different ways, institutions, laws etc., for achieving the “outcomes” advocated by the Principles. The
Methodology will be updated in the near future to fully take account of the 2023 revisions of the
Recommendation.
OECD/LEGAL/0413
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