Instructions for the application of the Code, statements and recommended decisions by the Market Practice Board and old versions of the Corporate Governance Code can be found at the bottom of this page.
The Corporate Governance Code is a collection of recommendations on good corporate governance for listed companies. The recommendations of the Corporate Governance Code supplement the obligations of legislation. The purpose of the Corporate Governance Code is to maintain and promote the high quality and international comparability of corporate governance practices of Finnish listed companies. Good corporate governance supports the value creation and attractiveness of Finnish listed companies as targets for investments.
The purpose of the Corporate Governance Code is to standardise the practices of listed companies and promote transparency in corporate governance and remuneration. From the perspective of shareholders and investors, the Corporate Governance Code increases the transparency of corporate governance and the possibilities for shareholders and investors to assess the practices followed by individual companies. The Corporate Governance Code also allows investors to form an overall understanding of acceptable corporate governance practices in Finnish listed companies.
The first recommendation on the governance of listed companies in Finland was issued in 1997 by Finland Chamber of Commerce and the Confederation of Finnish Industry and Employers (now the Confederation of Finnish Industries). In 2003, the same parties together with Hex Corporation (now Nasdaq Helsinki Ltd) issued a recommendation on the corporate governance of listed companies. Responsibility for maintaining the Corporate Governance Code was transferred to the Securities Market Association when the association was founded in 2006. Since then, the Corporate Governance Code has been revised in 2008, 2010, 2015 and 2019. The current Corporate Governance Code entered into force on 1 January 2020.
The Market Practice Board of the Securities Market Association interprets and issues recommended decisions and opinions on the application of the Corporate Governance Code upon request or on its own initiative. The Corporate Governance Code has been incorporated into the regulations of Nasdaq Helsinki Ltd. When interpreting the Corporate Governance Code, the Market Practice Board consults Nasdaq Helsinki Ltd where necessary in order to facilitate its supervisory work.
The Market Practice Board interprets and issues recommended decisions on the application of the Corporate Governance Code on its own initiative or upon request. Listed companies that have joined as Supporting Members and their representatives may request a recommended decision from the Market Practice Board free of charge. The request for a recommended decision must be made in writing. More information on how to request a recommended decision is provided by the Board’s secretaries.
Printed copies of the code can be ordered here.