Coming of age: The Evolution of Corporate Governance Laws in Greece

Abstract

This research examines the evolution of corporate governance laws in Greece from Law 3016/2002 through to the latest Law 4706/2020, as well as the related Decision No. 1/891/30.09.2020 by the Capital Market Commission. It focuses on a detailed review of existing literature to understand the administrative and fiscal impacts of these changes on companies listed on the Athens Stock Exchange. The study highlights a significant shift from the earlier "soft law" approach, which suffered from weak monitoring and enforcement, resulting in a gap between the legislative goals and actual results. Law 4706/2020 introduces a stricter regulatory framework with numerous requirements designed to improve corporate governance structures. Key features of this reform include the creation of new committees overseeing remuneration and compliance, stringent board member qualifications, and a stronger focus on gender diversity and stakeholder engagement. These developments aim to enhance accountability, transparency, and efficiency, essential for effective governance. The research compares old and new legislative frameworks to demonstrate the progress made in aligning Greek corporate governance with international standards. It argues that Law 4706/2020 is a significant advancement in corporate governance, potentially serving as a model for other regions. However, the detailed and strict compliance requirements introduced may challenge implementation and effectiveness. The paper suggests that these legislative changes mark a new chapter in corporate governance that requires diligent, forward-looking, and adaptable management from companies. It also stresses that achieving full compliance with the new regulations requires ongoing commitment to improvement and readiness to handle the complexities of this new regulatory environment.