Corporate governance : a ground for further development in the Maltese scenario

Abstract

Corporate governance remains one of the most topical and controversial areas of business and finance of our time. Indeed, pursuant to the recent spectacular corporate governance failures in the United States and Europe, the key concept behind corporate governance has been treated with heightened urgency. This has gained momentum to such an extent that the traditional approach of self-regulation is paving the way to a tighter framework led by International Institutions and nation states. In fact, the international field has witnessed the extensive movement led by the OECD in its Principles for Corporate Governance which in a matter of few years have been revisited and rearranged so as to cater better for the demands of business. Today these are a benchmark in corporate practice and have been the inspiration behind several other initiatives worldwide. A case in point remains the European Union with its breakthrough approach towards enhancing company law and corporate governance. In fact, in an effort to consolidate and improve the Internal Market, the EU has embarked upon several intensive legal initiatives which are seen as a precondition to strengthen economic efficiency all throughout the Community. Ultimately, all these developments are reflected in the Maltese corporate scenario where enhanced self-regulation in corporate governance is being coupled with considerable new legislative provisions in order to foster a sound corporate governance framework. Nonetheless, the question remains - is there effectively a ground for further development? The Thesis Corporate Governance, a ground far further development in the Maltese scenario seeks to capture these dynamic mechanisms by providing a good overview of the underlying factors and academic arguments revolving around the notion of corporate governance. Ultimately, the Thesis through a number of recommendations calls for bolder legislative action to be taken in the Maltese scenario so as to attain a sustainable corporate governance framework in an effort to optimise economic performance and generate common well-being.