The Malta Financial Services Authority issued guidelines entitled The Code of Good Corporate Governance introduced in 2001. The aim of the guidelines is to assist enterprises in establishing a respectable approach towards not only shareholders but also the general public: the underpinning rationale is that the way company directors exercise their stewardship is a matter of public interest, and that better relations open up new business opportunities. The MFSA’s guidelines encourage companies to set up boards of directors, with a chairman, and to undertake rigorous evaluations of their annual performance and of the companies’ individual directors.
Corporate governance is the system by which companies are directed and controlled. It deals largely with the relationship between the constituent parts of a company. Transparency and accountability are the most important elements of good corporate governance. This includes: the timely provision by companies of good quality information; a clear and credible company decision-making process; shareholders giving proper consideration to the information provided and making considered judgments.
DF Advocates advise on changes in shareholding structures, protection on minority shareholding, corporate and individual directorship as well as group restructuring.