Corporate governance in Europe

European firms that are listed on a US marketplace must comply with the Sarbanes-Oxley act. There is a clear schedule for compliance, with a deadline in 2005. It requires firms to develop an internal strategy adapted to their needs, based on analysis and documentation of risks and internal control procedures for accounting and financial information.

In the long term, regulatory frameworks on corporate governance are likely to converge. Listed companies operate in a global environment and, most significantly, US and international investors often hold a large stake in their capital.



The rules were introduced after the US scandals. This was the legislator's reaction to scandals in both the USA and Europe. The current framework is a starting point; it will be modified to remove the weaknesses identified following its recent implementation.



The report on corporate governance principles from the OECD is a source of inspiration for firms and for the legislator. The government is currently looking into the possibility of integrating some of the international organisations' recommendations into the current legal framework.



The new global regulations implemented by governments and institutions focus on the crucial role played by auditors in ensuring the transparency and quality of financial information. Mazars, as a global audit player, can only be delighted by this re-affirmation of the "public service" which the profession provides to the economy. Today, Mazars assists companies with the major challenges facing them: the implementation of the IFRS standards and compliance with European and US corporate governance legislation. As an independent player, Mazars aims to meet the needs of its clients and of all economic players (firms, shareholders, investors, etc.) by helping to provide reliable, high-quality financial information.