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

Authors

  • Savvina Paganou Department of Management Science and Technology, School of Economic Sciences, University of Western Macedonia
  • Ioannis Antoniadis 4Department of Management Science and Technology, School of Economic Sciences
  • Despoina Xanthopoulou
  • Panagiota Xanthopoulou Department of Business Administration, University of West Attica, 250 Petrou Ralli and Thivon, 12243 Greece https://orcid.org/0000-0003-2503-3901

DOI:

https://doi.org/10.34190/ecmlg.20.1.3013

Keywords:

Law 3016/2002, :aw 4706/2020, Corporate Governance reforms, Narrative Literature Review, Regulatory Compliance, Remuneration Committee, Nomination Committee

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.

 

Author Biographies

Ioannis Antoniadis, 4Department of Management Science and Technology, School of Economic Sciences

Dr. Ioannis Antoniadis is a Professor in the Department of Management Science and Technology at the University of Western Macedonia, specializing in "Corporate Governance, Business Efficiency, and Investments." He teaches courses in Management, Business Strategy, and Marketing. Additionally, he is the Director of the MSc Program in E-Business and Digital Marketing and the Head of the Department. He published in international and local refereed journals and presented his work at many conferences.

Despoina Xanthopoulou

Despina Xanthopoulou is a graduate of the Law School of Thessaloniki and works as a lawyer. She has also completed her studies at the Department of Education at the University of Western Macedonia and got a degree in Economics from the Department of Management Science and Technology at the University of Western Macedonia.

Panagiota Xanthopoulou, Department of Business Administration, University of West Attica, 250 Petrou Ralli and Thivon, 12243 Greece

Dr Panagiota Xanthopoulou is a Postdoctoral Researcher and Academic Fellow of the Department of Business Administration at University of West Attica. Her teaching and research interests include Public Administration, Entrepreneurship & Innovation and Distance Education. Her research has been published in international and Greek scientific journals and has also been presented at international scientific conferences.

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Published

2024-11-13