Corporate Governance Guidance and Principles for Unlisted Companies in Europe

In contrast to listed companies, where the incentive for governance comes from external pressure, governance in unlisted companies must be stimulated from within and should much more build upon the true value-drivers of governance, such as fostering: 1- continuity (over the generations), 2- growth (opening towards external funding and new shareholders) and 3- professionalism (checks & balances, focus on the interest of the company, etc). With the Covid crisis, Corporate Governance also appears as a tool for resilience. The need to surround oneself as an executive with the expertise of non-executives is essential in times of crisis to bounce back. We believe at ecoDa that this Guidance can help entrepreneurs add value to their business with their board. To support companies in that process, ecoDa has kept a phased approach to governance (rather than one-size-fits-all), tailored to the development phases of the company. We sincerely hope that companies will adapt these recommendations to their needs.