As a result of this amendment, the principles of corporate governance were defined in Article 49. It also expressly states that in the event of ambiguity, the provisions could be translated and incompatible with the above-mentioned principles. The principles are as follows: the committee`s task is to formulate the criteria for determining the qualification, positive qualities and independence of directors, recommendation of the remuneration policy. The Committee also formulates criteria for individuals within management who deserve to be directors. At least four one-year meetings shall be held by the audit committee, the maximum interval between two meetings not exceeding 120 days. The quorum is either two members or 1/3 member of the committee, which must be superior, but at least two independent directors must be present. “Corporate governance aims to maintain a balance between economic and social objectives, as well as between individual and community objectives. The governance framework aims to promote the efficient use of resources and to require accountability in the management of these resources. The aim is to reconcile the best interests of individuals, businesses and society. ” – Sir Adrian Cadbury, UK, Commission Report: Corporate Governance 1992 The fundamental criterion on which the entire listing agreement is based is corporate governance. At present, 54 clauses of the listing agreement are all based on this concept.
In addition, there is a clause that deals specifically with corporate governance, i.e. Article 49. Listing means the admission of securities to trading on a recognized stock exchange. Securities can be from any public limited company, central or national government, quasi-public and other financial institutions/companies, municipalities, etc. The objectives of the listing are mainly: • to provide liquidity to the securities; • mobilizing savings for economic development; • to protect the interests of investors by ensuring full disclosure. A company wishing to place its securities on a stock exchange is required to submit an application to the Stock Exchange in the prescribed form before the company issues the prospectus when the securities are issued by prospectus or before the issuance of the “offer to sell”, when the securities are issued through an offer to sell. . . .