Corporate Governance Developments in Italy

Abstract

The paper has described and examined the most relevant corporate governance developments in Italy, taking into account both the normative developments, such as laws and codes of conducts, as well as actual developments in corporate practices. Taking into accounting the ownership and control structure of Italian listed companies, the paper has examined the key corporate governance developments in Italy, including the 1998 Draghi law, the Preda Code of conduct and some of most recent developments concerning corporate governance after the Parmalat scandal. Regulation and actual corporate practice have been changing fast in the recent years, although they have not solved completely the key corporate governance issue concerning the relationship between controlling shareholders and minority shareholders. The paper reports that the overall awareness of the importance of corporate governance issues has increased among senior managers and directors of Italian listed companies.

Keywords: Corporate governance, Italy, code of best practice, IFRS, auditor rotation

JEL Classification: G34, K22, M41, M47, M49