Law 4706/2020 applies to all public companies listed on the regulated market in Greece. In general terms, the law introduces a stricter legal framework, it facilitates the exercise of internal control and handles more effectively conflicts of interest between shareholders and management.
Specifically, the law, among other things, brings about changes in the structure of the Board of Directors, it specifies and analyzes the responsibilities of its members and establishes their “Suitability Policy”. It introduces innovations in the content of the Company’s Rules of Procedure, it creates the Internal Audit, Shareholder Service and Corporate Announcements Units and finally, it renders the adoption and implementation of a Corporate Governance Code mandatory.
Finally, a key innovation of law 4706/2020 is the adoption of very severe sanctions through the imposition of fines of up to 3,000,000 € in case of violation of its provisions.
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