The crucial role played by corporate governance in the construction and maintenance of efficient financial markets is generally well understood in Italy. However, only in relatively recent times has such a concept taken the form of legislative innovations and reforms to the 1942 Civil Code.
In fact, the difficulties faced – and the lack of interest – in the boosting of modern corporate governance models have been closely linked to the characteristics of Italian capitalism. In particular, by the traditional concentration of ownership and control (and associated conflicts of interest between majority and minority shareholders) and the use of pyramidal groups of companies to allow financial and control leverage and to facilitate internal financing.
