The board ensures that its representatives on the boards of companies represent the interests of the social security institution. To avoid potential conflicts of interest, there is a priori alignment and compatibility between the institution’s objectives and the corporate objectives of the company.
Guideline code
GG_09200
Mechanism
Mechanism
- Verifying the alignment and compatibility of the social security institution’s objectives with those of the company should be part of the due diligence process of the board and management.
- The board must have a system in place to verify that its representatives on the boards of companies uphold the interest of the institution at all times.
- The board should have a policy to publish how its representatives on the boards of companies have exercised their votes.
- There should be a clear policy on the incomes and/or profits that board members are entitled to, if any, by virtue of their board membership in these companies.
Structure
Structure
- There should be a clear, written policy on the role that the institution should play on the boards of companies in which it has significant asset holdings.
Title HTML
Guideline 70. Objectives of representatives on boards of companies
Type
Guideline_1
Weight
96