Oecd legal Instruments

Background Information
The Recommendation on Principles of Corporate Governance (hereafter, the “Recommendation”)
was adopted by the OECD Council on 8 July 2015 on the proposal of the Corporate Governance
Committee (the 
2015 version
). The Principles of Corporate Governance, set out in the
Recommendation’s appendix, provide guidance to help policy makers evaluate and improve the legal,
regulatory and institutional framework for corporate governance, with a view to supporting market
confidence and integrity, economic efficiency, sustainable growth and financial stability. The Principles
of Corporate Governance were first adopted by the OECD Council in 1999. They were subsequently
revised in 2004, in 2015 at the time of their incorporation into the Recommendation, and most recently
on 8 June 2023 when the Recommendation, including the Principles of Corporate Governance, was
revised by the OECD Council meeting at Ministerial level. The Principles were endorsed by the G20 in
2015 and again on 9-10 September 2023 following the latest revision (G20 New Delhi Leaders’
Declaration) and are commonly referred to as the G20/OECD Principles of Corporate Governance.
The Financial Stability Board (FSB) has also designated the Principles of Corporate Governance as
one of its Key Standards for Sound Financial Systems.
OECD work on corporate governance
Since the adoption of the Recommendation in 2015, there have been significant developments
relevant to corporate governance, including, among others, concerning sustainability, ownership
concentration, institutional investors, and digitalisation. These developments are analysed in the report
"
The Future of Corporate Governance in Capital Markets Following the COVID-19 Crisis
" which
informed the Corporate Governance Committee’s decision to revise the Recommendation, and in the
series of reports and papers prepared to inform the revision of the Recommendation (see links to
related documents below). The objective of the revision in 2023 was to update the Recommendation
in light of recent evolutions in capital markets and corporate governance practices, and to ensure its
continued relevance and usefulness as the main global standard reference for policy makers, market
participants and other key stakeholders in the development of their legal and regulatory frameworks
for corporate governance.
An overarching goal of the revision was to promote corporate governance policies that support the
sustainability and resilience of corporations which, in turn, may contribute to the sustainability and
resilience of the broader economy. A sound framework for corporate governance with respect to
sustainability matters can help companies recognise and respond to the interests of shareholders and
different stakeholders, as well as contribute to their own long-term success. A second overarching
goal of the revision was to support national efforts to improve the conditions for companies’ access to
capital from public equity markets. Better access to equity markets can help strengthen the balance
sheets of viable corporations and help fund the emergence of innovative businesses that support the
green and digital transitions. 
The Corporate Governance Committee agreed to review the Recommendation in June 2021 with a
view to adapt the key elements of the Principles of Corporate Governance to the post-COVID-19
environment, including 10 priority areas. The Corporate Governance Committee discussed several
drafts throughout 2022 and 2023. G20 and FSB members participated in the discussions leading to
the revision, as did a number of other non-OECD members. An online public consultation was held as
well as an in-person stakeholder consultation. Business at OECD and the Trade Union Advisory
Council were consulted regularly throughout the process. Other relevant OECD committees were also
consulted.