I wrote my views today to the head of Corporate Governance at the OECD relating to their Guidelines on Corporate Governance. A work which I believe under-represents to position of external audit in Governance.
The document can be downloaded as a pdf for free from the OECD website.
It has been used as the basis of the Corporate Governance code in numerous countries. Its paucity of regulations on what should be the rights and powers as well as duties of external auditors have assisted Governments to fail to accord a full range of powers – of the sort enjoyed in the UK for instance – to external statutory auditors in many countries.
At the same time the EU did not impose on Member States the obligation to enact that auditors should be entitled to attend AGMs - at the very least of quoted companies they audit and given the right to speak at them. That is because they saw it as a matter of Corporate Governance which should be covered by Corporate Governance Codes.
At the same time, even were the OECD code contains great recommendations such as the one on page 44 that barriers to international voting should be done away with, many nations are still asking for physical attendance at the AGM. The AGM ought to be attendable in this day and age by personal appearance OR videolink and the auditor should always be in attendance – if not the people have no guarantee that they are being given the real audit report, and there is no guarantee that serious findings that the auditor wanted to have commuicated to the owners will be portrayed with the necessary gravity, or just explained as if they were harmless and made a joke of by the embarrassed Board.
Anyway, here is the letter I wrote:
I was only able in this 66 page document which I downloaded from the OECD website to see less than half a page of the most basic information on the topic of external auditors.
External auditors are the most effective way to police good corporate governance, and yet the lack of any recommendations for our profession to be given teeth means that countries such as Poland who used the OECD guidelines to create their own codes and thought that they were getting the best protection available don’t have anything like the built in systemic safeguards that countries like the UK have.
One example – in the UK the auditor has the right to attend the AGM. They must be given notice of it and have the right to address it in matters concerning their report. In Poland there is no such right and the OECD code is where the authorities point to show that there is no need of it. They are using the brevity of the code as an excuse for poor practice, and the result is that stock listed companies are able to call AGMs where they talk around the findings of auditors, often dead-batting our recommendations and we are not even given the right to be present and put the record straight.
My reason for writing is to ask to have the views of the audit profession heard more forcefully in a – hopefully near future – reworking of the Code. I believe that IFAC would be able to place much more technically high-powered people than myself to your disposal when the time comes, but if not I’m happy to give time to this as a public service. The way things are now I deeply feel that the code develops very well some aspects of governance, such as Directors’ duties, but gives so small a role to the natural enforcers and advisors on governance in client firms, namely our profession, and impose on us duties without according us any powers – or recommending the according to us of powers whether by national law or by contract – as to constitute a missed opportunity for good.
Had someone asked me, before I had opened the pdf, to guess at how many of the 66 sides would be dealing with the question of external verification, I would have said 5 to 10. I add that just as a quantifier of how relatively important to the whole I believe the topic is, and therefore as well and indication of its degree of under-representation, in my opinion, in the document.
The above is my individual view, not necessarily the view of all my colleagues.
David J. James
- EFF Declines to Endorse OECD Communiqué on Principles for Internet Policy-Making (eff.org)
- The Harvard Law School Forum on Corporate Governance and Financial Regulation (bjconquest.com)
- OECD: See Greek Deficit In Line With IMF Target, But Risks (forexlive.com)
- Report: Poverty in households with children is rising in nearly all OECD countries (bespacific.com)
Dear Quoracy subscribers,
Please find enclosed the new issue of our Tax Alert which lets you know about major changes in tax legislation and accounting in the Czech Republic over the current month. We trust that it will be valuable for you, helping you stay abreast of hot topics.
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- Czech Republic Thanked for Afghan Help (waronterrornews.typepad.com)
In Monopoly, whichever player is banker is supposed to keep the bank money separate to the money he’s also doing business with in the market. He’s also supposed to run the bank according to certain rules and if he was cheating it’d be game over. They should bring out a new version of Monopoly in which the Banker is allowed to cheat all he likes and always automatically wins, and another player is called The Government and that player chooses from the Chance and Community Chest cards for the other players instead of just getting them to take the next one in a shuffled pack. The Government cannot only do it to the banker – they automatically give the Banker the best card. Banker and Government get to throw three dice instead of two, and they are also allowed to compulsorily purchase other player’s properties, and also send them to Jail for two turns if they complain about the unfairness of the rules.
That modern update to the famous board game would be most enlightening. Nobody would play it given the choice, but in reality of course we don’t really have a choice. After all, there’s a monopoly of government in any country and there’s an oligopoly of banks.
- Scrabble Dictionary Adds ‘Thang,’ ‘Grrl’ (newser.com)
- AC/DC Collector’s Edition Monopoly Due In August (bravewords.com)
- Hooray, Settlers of Catan Is Not the New Monopoly (wired.com)
|Odwiedź Centrum Bezpieczeństwai dowiedz się, jak bezpiecznie kupować i sprzedawać na Allegro oraz jak bez obaw korzystać z Internetu.List został wysłany zgodnie z ustawieniami powiadomień konta Allegro huliganov.
Jeśli nie chcesz więcej otrzymywać tego typu powiadomień, zaloguj się do Allegro i w zakładce Allegro › Moje Allegro › Moje konto › Ustawienia: Powiadomieniai odznacz powiadomienia, których nie chcesz otrzymywać. Realizacja twojego żądania może potrwać do 7 dni.Niniejsza oferta handlowa nie stanowi oferty w rozumieniu przepisów kodeksu cywilnego oraz innych właściwych przepisów prawnych.
Nadawcą listu jest:
Poland’s production of household appliances is expected to grow some 5% this year. The country is expected to produce and export 15.5 million washing machines, dishwashers, refrigerators and cookers. Poland has already beaten Germany and is about to get ahead of Italy “Dziennik Gazeta Prawna” reports.
The so called large household appliances made this year in Poland will be worth the record amount of PLN 3 billion, the newspaper underlines. A lot of it is owing to Samsung Electronics who purchased a washing machine and refrigerators manufacturing plant in Wronki from Amica and announced that it would invest nearly USD 170 million in the development of this plant. Samsung Electronics is also to transfer its production from other European plants to Wronki. The investments are underway.
“Dziennik Gazeta Prawna” found out that Samsung Electronics says it is possible that production in Poland will be expanded with manufacturing heating equipment like ovens, stoves and plates. There is a large demand for this kind of appliances in the EU. According to analysts, demand for heating equipment will remain at around 30% of total annual production, “Dziennik Gazeta Prawna” notes. (Source: gazeta.pl)
- Wonder Washing – The 12 Minute Wash (moneysupermarket.com)
- Hans Rosling and the magic washing machine (TED) (exitbusiness.wordpress.com)
- Samsung officially announces the Galaxy Tab 10.1 with availability starting next week at Best Buy New York (9to5google.com)
“Cyprus: a vehicle for international transactions and investments”
Intercontinental Hotel, Emilii Platter 49, Warsaw
16 June 2011, 8.00am – 11.00am
This event is aimed at introducing Cyprus companies as vehicles for international transactions and investments covering the key requirements applied by the authorities and the banking system in Cyprus and Poland.
Experienced professionals and speakers of Baker Tilly Poland and Baker Tilly Klitou of Cyprus will be presenting a range of topics, suggesting practical solutions and sharing their experience. A Q&A session before the close of the event will give participants the opportunity to talk directly with our speakers in order to raise their queries or obtain additional information.
8.00 – 8.35 am - Business breakfast
8.35 – 8.40 am - Welcome address
David James, International Liaison Partner, Baker Tilly Poland
8.40 – 8.55 am - “Cyprus transactions: Polish taxation”
Steven Foster, Baker Tilly Poland
8.55 – 9.10 am - “Cyprus: an attractive investment and business destination”
Marios Klitou, CEO of Baker Tilly Klitou
9.10 – 9.25 am - “IFRS Regulations in Cyprus”
Christodoulos Loulloupis, Director, Audit Services, Baker Tilly Klitou
9.25 – 9.40 am - “Tax in Cyprus and structuring ideas”
Therapon Mafkas, Director, Tax Services, Baker Tilly Klitou
9.40 – 9.55 am - “Collective Investment Schemes”
Chris Koutouroushis, General Manager, Bizserve Consultants Ltd
9.55 – 10.10 am - Presentation from a Cyprus bank on “International Banking in Cyprus”
10.10 – 10.25 am - “Polish-Cypriot success stories – Enhancing investment opportunities”
David James, International Liaison Partner, Baker Tilly Poland
10.25 – 10.55 am - Questions & Answers
11.00 am - Close of Conference
In order to obtain your free registration, please contact firstname.lastname@example.org by Wednesday, 8th June 2011. If demand exceeds space available, registration will be first come, first served.
We look forward to seeing you at the Conference!
- Why Buy A Property In Cyprus Is A Good Idea For You? (propertiesincyprus.wordpress.com)
- How To Get A Property In Cyprus To Live? (propertiesincyprus.wordpress.com)
- What a beautiful country – Cyprus, Cyprus (travelpod.com)
- Sunday after Easter flying to Cyprus again. – Larnaca, Cyprus (travelpod.com)
- Bank of Cyprus: Disagrees With Fitch Downgrade Of Cyprus Debt (forexlive.com)
Shortly after Baker Tilly Poland‘s much talked-about Warsaw office move to groundbreaking accommodations at Crown Tower on Hrubieszowska 2, their Łódź office has followed suit, moving from ul Niciarna to ul Nawrot 114, 90-029 Łódź.
Their phone numbers, emails, etc are the same as before.
A spokesperson for Baker Tilly said “we look forward to focussing a stronger presence in Poland’s second city and assisting in the vital and dynamic development of this critical region. With the progress on the Warsaw-Berlin motorway continuing to a gradual conclusion, the axis between Lodz and Warsaw will give rise to additional opportunities for business and prosperity in this part of Poland in the coming years”.
- Acting Up in Łódź, Poland (stevensirski.wordpress.com)
- Discover Poland: the best of the country and the cities (guardian.co.uk)
- Motivating employees during the economic slowdown and recovery – TGC Legal Alert (quoracy.com)
- Police arrest 21 after stadium rioting in Poland (usatoday.com)