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transparency, stakeholders and board of directors. With these princi-
ples, the goal is:
• to protect the rights of shareholders as well as to ensure that
corporations do not forget their legal, contractual, market pro-
tecting and social obligations to stakeholders such as employ-
ees, investors, clients and creditors who are not actually share-
holders;
• to disclose to the public the responsibilities and duties of the
board of directors and the administration (managers) and to ren-
der this disclosure regularly in order to establish a certain level
of accountability in favor of any stakeholder;
• to adopt rules which would support ethical decision making
mechanisms of corporations; and
• to assure that the board of directors has sufficient skills and
understanding to monitor the administration of the company
and also that it has a balanced commitment and independence
vis-a-vis the company.
The corporate governance principles will be taken into considera-
tion in a more detailed manner in the coming months.
Enforcement
Some of the corporate governance principles are provided as com-
pulsory rules to be followed, while some of them as only guidelines. In
the Communiqué, it is determined explicitly which principles consti-
tute the obligatory principles that shall be followed. The Board has ex-
officio authority to enforce the execution of such obligations and to
take the necessary actions for such execution.
In line with this, the Board has the authority to file a declaratory
action against transactions which are not in compliance with obligato-
ry principles, to request preliminary injunctions without granting any
securities for the rescissions of these transactions, to bring actions and
to request to the relevant court that the decision be adopted in a man-
ner that will result in compliance with the relevant obligation. The
Board shall make its requests to the court so as to include a suggestion
as to the how compliance may be attained.
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