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Corporate Governance
Our Principles of Corporate Governance
Find out more about the X Principles applicable to Luxembourg companies whose shares are admitted for trading on a regulated market operated by LuxSE and must therefore apply these principles without exception.
Principle 1: Corporate governance framework
The company shall adopt a clear and transparent corporate governance framework for which it shall provide adequate disclosure.
Principle 2: The Board of Directors’ remit
The Board shall be responsible for the management of the company. As a collective body, it shall act in the corporate interest, and shall serve all the shareholders by ensuring the long-term success of the company. They shall consider corporate social responsibility aspects and shall take into account the interests of all stakeholders in their deliberations.
Principle 3: Composition of the Board of Directors and of the special committees
The Board shall be composed of competent, honest, and qualified persons. The choice of those persons shall take account of the specific features of the company. The Board shall establish the special committees necessary for the proper execution of its remit.
Principle 4: Appointment of members of the Board of Directors
The company shall establish a formal procedure for the appointment of members of the Board of Directors.
Principle 5: Professional ethics
The Directors must exercise the mandate with integrity and commitment. Each shall represent the shareholders as a whole, and shall make decisions in the company’s interest, and independently of any conflict of interest.
Principle 6: Executive Management
The Board shall set up a body responsible for the effective executive management of its business. It shall clearly define the assignments and duties of the Executive Management and shall delegate to it the powers required for the proper discharge thereof.
Principle 7: Remuneration policy
The company shall establish a fair remuneration policy for its Directors and the members of its Executive Management that is compatible with the long-term interests of the company.
Principle 8: Financial reporting, internal control and risk management
The Board shall establish strict rules designed to protect the company’s interests in the areas of financial reporting, internal control and risk management.
Principle 9: Corporate social responsibility (CSR)
The company shall define its corporate social responsibility policy with respect, including to it those responsibilities related to social and environmental aspects. It shall set out the measures taken for its implementation of that policy and shall provide for these to be adequately published.
Principle 10: Shareholders
The company shall respect the rights of its shareholders and shall ensure that they receive equal treatment. The company shall define a policy of active communication with its shareholders and shall establish a related structured set of practices.
Corporate governance reports
Browse our reports, which analyse the application of our 10 Principles of Corporate Governance by companies listed for trading on our regulated market.
The Ten Principles of Corporate Governance at LuxSE
