ABSTRACT
This chapter explores the fascinating diversity of corporate governance forms in Europe and the distinctive features of this relationship-based approach. It provides the importance of bank finance and business networks, which traditionally provide sources of finance and resources that in the Anglo-American system is the role of equity markets. The chapter examines the deeper transformations of the industrial and governance systems of Germany, France and Italy. It then considers the efforts of the European Commission to achieve a modernizing of company law and enhancing of governance. The first Vienot Report reviewed the principal issues concerning membership, powers and operation of the boards of French listed companies. The 1998 Draghi Reform required company boards to improve their monitoring and compliance; observe 'principles of correct administration'. The 2003 Corporate Governance Report was prepared by the Copenhagen Stock Exchange Committee on Corporate Governance. This report incorporates the findings of the Norby Committee on corporate governance and annual reports of companies.
