ICLGThe International Comparative Legal Guide to: Corporate Governance 2017 10th Edition A practical cross-border insight into corporate governance Published by Global Legal Group, with contributions from: Allens Kluge Advokatfirma AS ALRUD Law Firm Law Firm Charles Badou & Partners Ashurst Hong Kong Lenz & Staehelin Ashurst LLP Linklaters LLP Astrea Lobo & Ibeas Advogados BEITEN BURKHARDT McCann FitzGerald BGK Law Firm Montel&Manciet Advocats Blake, Cassels & Graydon LLP Munari Cavani Čechová & Partners Nielsen Nørager Law Firm LLP Cox Hallett Wilkinson Limited Nishimura & Asahi Cuatrecasas Trilegal Dorsey & Whitney LLP TSG Tomić Sinđelić Groza Edmond Pereira Law Corporation UGGC Law Firm Ferraiuoli LLC Waselius & Wist Georgiev, Todorov & Co. WBW Weremczuk Bobeł & Partners, Attorneys at Law Hadiputranto, Hadinoto & Partners (HHP Law Firm) Zhao Sheng Law Firm I. Frangos & Associates LLC The International Comparative Legal Guide to: Corporate Governance 2017 Country Question and Answer Chapters: 1 Andorra Montel&Manciet Advocats: Maïtena Manciet Fouchier & Liliana Ranaldi González 1 2 Australia Allens: Vijay Cugati & Kate Towey 5 Contributing Editors 3 Belgium Astrea: Steven De Schrijver & Thomas Daenens 13 Bruce Hanton & Vanessa Marrison, Ashurst LLP 4 Benin Law Firm Charles Badou & Partners: Charles Badou & Ogoudjé César Guégni 21 Sales Director Florjan Osmani 5 Bermuda Cox Hallett Wilkinson Limited: Natalie Neto 27 Account Director 6 Brazil Lobo & Ibeas Advogados: Paulo Eduardo Penna 33 Oliver Smith Sales Support Manager 7 Bulgaria Georgiev, Todorov & Co.: Alexander Katzarsky & Georgi Georgiev 41 Paul Mochalski Senior Editors 8 Canada Blake, Cassels & Graydon LLP: Frank P. Arnone & Madison Kragten 47 Suzie Levy, Rachel Williams 9 China Linklaters LLP / Zhao Sheng Law Firm: Fang Jian & Grace Yu 54 Chief Operating Officer Dror Levy 10 Cyprus I. Frangos & Associates LLC: Maria Raphael & Nikoleta Pogiatzi 61 Group Consulting Editor Alan Falach 11 Denmark Nielsen Nørager Law Firm LLP: Peter Lyck & Thomas Melchior Fischer 71 Publisher Rory Smith 12 Finland Waselius & Wist: Fredrik Lassenius 78 Published by 13 Germany BEITEN BURKHARDT: Moritz Kopp, LL.M. & Dr. Markus Ley 85 Global Legal Group Ltd. 59 Tanner Street 14 Hong Kong Ashurst Hong Kong: Joshua Cole 92 London SE1 3PL, UK Tel: +44 20 7367 0720 Fax: +44 20 7407 5255 15 India Trilegal: Kosturi Ghosh & Wiseroy Damodaran 97 Email: [email protected] URL: www.glgroup.co.uk 16 Indonesia Hadiputranto, Hadinoto & Partners (HHP Law Firm): Mark Innis & Denny Ngadimin 104 GLG Cover Design F&F Studio Design 17 Ireland McCann FitzGerald: David Byers & Paul Heffernan 111 GLG Cover Image Source iStockphoto 18 Italy Munari Cavani: Raffaele Cavani & Paolo Preda 118 Printed by Ashford Colour Press Ltd 19 Japan Nishimura & Asahi: Nobuya Matsunami & Kaoru Tatsumi 125 June 2017 20 Morocco UGGC Law Firm: Ali Bougrine 132 Copyright © 2017 Global Legal Group Ltd. 21 Norway Kluge Advokatfirma AS: Atle Degré & Linn Hoel Ringvoll 138 All rights reserved No photocopying 22 Poland WBW Weremczuk Bobeł & Partners, Attorneys at Law: Łukasz Bobeł & ISBN 978-1-911367-56-7 Krzysztof Weremczuk 145 ISSN 1756-1035 23 Cuatrecasas: João Mattamouros Resende 152 Strategic Partners Portugal 24 Puerto Rico Ferraiuoli LLC: Fernando J. Rovira-Rullán & Yarot T. Lafontaine-Torres 158 25 Russia ALRUD Law Firm: Anton Dzhuplin & Timur Akhundov 164 26 Serbia TSG Tomić Sinđelić Groza: Dr. Gorana Kršikapa LL.M. & Ljubica Tomić 171 27 Singapore Edmond Pereira Law Corporation: Benjamin Choo & Kimberly Neo 183 28 Slovakia Čechová & Partners: Katarína Čechová & Ivan Kolenič 190 29 Slovenia BGK Law Firm: Luka Gaberščik 196 30 Switzerland Lenz & Staehelin: Patrick Schleiffer & Andreas von Planta 201 31 United Kingdom Ashurst LLP: Bruce Hanton & Vanessa Marrison 208 32 USA Dorsey & Whitney LLP: Robert A. Rosenbaum & Cam C. Hoang 220 Further copies of this book and others in the series can be ordered from the publisher. Please call +44 20 7367 0720 Disclaimer This publication is for general information purposes only. It does not purport to provide comprehensive full legal or other advice. Global Legal Group Ltd. and the contributors accept no responsibility for losses that may arise from reliance upon information contained in this publication. This publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations. WWW.ICLG.COM EDITORIAL Welcome to the tenth edition of The International Comparative Legal Guide to: Corporate Governance. This guide provides corporate counsel and international practitioners with a comprehensive worldwide legal analysis of the laws and regulations of corporate governance. The guide is divided into country question and answer chapters. These provide a broad overview of common issues in corporate governance laws and regulations in 32 jurisdictions. All chapters are written by leading corporate governance lawyers and industry specialists, and we are extremely grateful for their excellent contributions. Special thanks are reserved for the contributing editors Bruce Hanton and Vanessa Marrison of Ashurst LLP for their invaluable assistance. Global Legal Group hopes that you find this guide practical and interesting. The International Comparative Legal Guide series is also available online at www.iclg.com. Alan Falach LL.M. Group Consulting Editor Global Legal Group [email protected] Chapter 1 Andorra Maïtena Manciet Fouchier Montel&Manciet Advocats Liliana Ranaldi González 1 Setting the Scene – Sources and 1.3 What are the current topical issues, developments, Overview trends and challenges in corporate governance? The Principality of Andorra is in the process of modernising 1.1 What are the main corporate entities to be discussed? its corporate sector, which was recently opened up to foreign investment. With respect to the sectorial regulation of the The main corporate entities that will be discussed in this chapter corporate governance of financial institutions, there has been a are the societat anònima (SA) and the societat de responsabilitat significant legislative effort to harmonise Andorran policy with the limitada (SL), without taking into account the specificities requirements of neighbouring countries. However, Andorra is still a contemplated in the sectorial laws mentioned below. Please bear in conservative jurisdiction in terms of corporate governance. mind that in Andorra there is no stock exchange market. 2 Shareholders 1.2 What are the main legislative, regulatory and other corporate governance sources? 2.1 What rights and powers do shareholders have in the Both the societat anònima and the societat de responsabilitat operation and management of the corporate entity/ limitada are regulated by the Legislative Decree of February 26th, entities? 2014 of the consolidated text of Law 20/2007 of October 18th, 2007 (Decret legislatiu del 26 de febrer de 2014 de publicació del text The ownership of one or more shares confers the status of refós de la 20/2007, del 18 d’octubre, de societats anònimes i de shareholder to its holder, and all the rights and obligations responsabilitat limitada). inherent to the share and, in particular, the right to participate in It is mandatory for both types of companies to have articles of the distribution of corporate earnings and in the net assets resulting association containing the primary regulations for the company’s from the company’s liquidation, the right of first opportunity to operations and organisation. purchase, the pre-emptive right to subscribe to the issuance of new shares established at the articles of association, the right to vote at There are also sectorial laws which include regulations regarding the general meetings and the right to receive information. corporate governance, such as: ■ Llei 37/2014, de l’11 de desembre, de regulació dels jocs d’atzar. 2.2 What responsibilities, if any, do shareholders have as ■ Decret legislatiu del 12-02-2014 de publicació del text regards the corporate governance of their corporate refós de la Llei 8/2013, del 9 de maig, sobre els requisits entity/entities? organitzatius i les condicions de funcionament de les entitats operatives del sistema financer, la protecció de l’inversor, The ownership of one or more shares implies the submission of its l’abús de mercats i els acords de garantia financera. holder to the articles of association, and to all the decisions of the ■ Decret legislatiu del 12-02-2014 pel que s’aprova el text general meetings, without prejudice to the rights and actions granted refós de la Llei de regulació del règim disciplinari del sistema to them by the law. financer. ■ Llei 7/2013, del 9 de maig, sobre el règim jurídic de les 2.3 What shareholder meetings are commonly held and entitats operatives del sistema financer andorrà i altres what rights do shareholders have as regards them? disposicions que regulen l’exercici de les activitats financeres al Principat d’Andorra. The shareholders’ meetings are called General Meetings, which may ■ Llei 24/2008, del 30 d’octubre, sobre el règim jurídic de les be ordinary or extraordinary. entitats financeres -no bancàries- de crèdit especialitzat. An Ordinary General Meeting must be called once a year in first There is proposed legislation currently with the Andorran parliament the six (6) first months following the end of the financial year. An concerning insurance companies. This legislation contains a number of