- forcing the corporate responsibility – reputation – goodwill
EACH ENTITY (company/organization) IS REQUIRED TO ACT CONSISTENTLY, in comply with National laws and European regulations related to its internal & external relations.
The highly-valued purposes that get served by the Compliance Governance’s Guiding Principles are the following:
A. Promotion of the investing interest and competitiveness of the company as linked to its sustainability.
Corporate interest is protected when the statutory bodies of a company manage corporate affairs, ensuring the equal treatment of shareholders – including and the minority shareholders – as well as those parties whose interests are linked to those of the company such as employees, creditors, investors, banks.
Β. Assessment of the legality of corporate decisions / resolutions
Internal control systems are strengthened as the set of controlling mechanisms and procedures, including risk management, regulatory compliance. They succeed in covering every activity of the Company and contributing to its safe and efficient operation. As a result of this lasting control, the smooth operation of a business activity is managed and conflicts of interests are avoided.
C. Enhancing the solvency/reliability of a company in the market, making it more competitive and increasing investing interest
Corporate entities that operate in compliance with the applicable legislation & adopt a code of conduct, such as the Hellenic Corporate Governance Code (HCGC). It includes the Law 4706/2020 (known as “Corporate Governance Law”), the decisions of the Hellenic Capital Market Commission issued by delegation of the Law, certain provisions of Law 4548/2018 on public limited companies and authorities, best practices and recommendations for self-regulation, which are incorporated in the present corporate governance code.
Specifically, such codes provide guidance and act as reference point on “how to adopt good practices and facilitate the formulation of corporate governance policies that are appropriate to the specific circumstances of each company”. It is described as a soft law, comprising ‘rules governing the composition, functioning and duties of the board of directors, with particular emphasis on issues of liability and the management of potential conflicts of interest between management and the company, shareholders (majority or, more often, minority), and third party stakeholders, as well as minority protection and remuneration policy issues.
It was initially applied to public limited companies, as mentioned above, because of their significant financial footprint: companies operating with large capital, complex management structure; difficulty in monitoring the legitimacy of decision-making; conflicting interests. However, the similar application of this Code “HCGC” to other capital companies is not excluded.
Law No. 4706/2020 HCGC, as it is valid after the ultimate changes L. 5178/2025, has been recognized as a model code for any company that wants to enhance its value in the business world and strengthen its reputation.
D. Financing coming from banks – organizations is favoured
It is proved that a more positive attitude of credit institutions is presented, which are willing to approve financial supporting – loaning to compliant enterprises due to their increased creditworthiness. Companies limited by shares (SA, LLC) pose risks of legitimate operation and conflicts of interest due to their complex structure and large financial interests. It is therefore important to ensure that there is a regulatory compliance matrix that defines how they operate and it provides guarantees of their lawful operation.
- The following are some of important concepts, that found in the context of applied regulatory compliance:
–SHAREHOLDERS’ AGREEMENTS
The “key” elements of corporate compliance are agreements that are essential for the smooth operation of a company and the promotion of the corporate interest. Its statutory bodies held the meetings in a valid & timely manner, approve agreements, transfers of shares (share agreement), grant privileges, decide on transactions with third parties.
-DATA PROTECTION REGULATION (GDPR)
The protection of personal data of both the staff of a company and its customers is of utmost concern, hence the existence of an institutional framework (Regulation, GDPR Decisions), non-compliance with which entails high fines.
-CLIENT IDENTIFICATION PROCESS (KNOW YOUR CLIENT)
Any business engaged in financial activity or involved in client transactions (as a legal or tax representative) should have its own “gatekeepers”, who will gather, control & file important financial information about the Client before the business relationship is initiated. This is called as “Assessment of the client’s financial profile & transparency”. Taking the necessary due diligence measures Business relations are built the Danger of Money Laundering (AML) is minimized.
-WHISTLEBLOWING
established by National Law 4990/2022
Appointment of a person as a responsible person in charge of receiving and monitoring the relevant reports (“Whistleblower”) in companies < that employ 50 or more employees > to whom violations perceived both internally within a company and coming out of the company will be reported. It is envisaged that competent managers of the undertaking will be assigned the role of recipient of the reports in order to better contribute to the timely and effective response to any risks to the public interest.
-ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE (ESG)
Set of rules & strategies linked to principles of sustainable development & social responsibility of an organisation. The concept of corporate interest is now emerging from the contemporary debate on sustainability principles and is attracting investment interest. Therefore, in order to enhance corporate transparency and highlight sustainable investments in the Greek capital market, the digital tool for collecting ESG Information ATHEX ESG Data Portal was launched in last year.
The Law-in-Business team, having a depth knowledge of all corporate values for a legitimate & sustainable business, we could support & guide you safely in protecting your corporate interest and enhancing the value of your business.