CORPORATE GOVERNANCE REFORMS IN GREECE AND CYPRUS

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Abstract

The recent International and European reforms concerning corporate governance and the need for effective capital markets “dictated” a reform in company law and corporate governance regimes in Greece and Cyprus. The latter are both small or medium sized markets, based on family owned companies and banks. Despite the cultural link between the aforesaid countries and their geographical proximity, their approach towards the adoption of corporate governance principles and best practices is not similar and depicts a difference due to historical and political reasons. This paper has two objectives, namely: i) to present the main aspects of corporate governance in Greece and Cyprus and the basic legal framework implementing the fundamental principles of good governance and ii) to attend an evaluation of these regimes and integrate them within the international and European debate of reforming corporate governance, while in the meantime, to strike out the different choice of legal tools in implementing corporate governance. Firstly, I will review the Greek corporate governance legal framework. Secondly, I will describe the equivalent regime in Cyprus and finally, I will summarize the overall findings in an attempt to compare and assess them in a more critical way, with reference to cultural aspects of corporate governance and as regards the international and European corporate governance framework applied.

Keywords: Corporate Governance, Greece, Cyprus, Cultural Aspects, Codes, Reforms, Assessment, Enforcement

How to cite this paper: Stefou, M. (2009). Corporate governance reforms in Greece and Cyprus. Corporate Ownership & Control, 7(1-1), 173-191. https://doi.org/10.22495/cocv7i1c1p3