Corporate governance has become one of the hottest topics in the Spanish business world. Although there have been some earlier academic approaches to the subject, the starting point for this round of discussion is the so-called Special Commission for the Study of an Ethics Code for Corporate Boards. The commission was appointed by the Spanish Government in 1997 with instructions to issue a report on the boards of directors of listed companies, as well as to set up a code of good governance.
This report, issued in February 1998, is currently known as the Olivencia Code (Codigo Olivencia). It established a series of recommendations for voluntary compliance on the functioning and structure of boards of directors. It was inspired, inter alia, by the British Cadbury report. Since its publication, the National Securities Exchange Commission (CNMV) has set up a ‘comply or explain’ policy for listed companies in respect of the code’s recommendations.
