AFM to monitor conflicts of interest

The financial services watchdog AFM is to focus attention on extra jobs done by supervisory board members, the Financieele Dagblad reports on Wednesday. The paper says questions may be raised if such jobs are not included in company annual reports.

For example, the Akzo Nobel 2005 annual report does not mention that at least three of its 10 supervisory board members have close ties to private equity companies or merchant banks.
The Tabaksblat code on corporate governance requires that bourse-listed companies list ‘relevant’ additional jobs done by supervisory board members. IFRS rules require jobs with ‘related parties’ be noted. The AFM spokesman said this included working for companies which did business with the firm where the person concerned was a supervisory board member.
The Akzo Nobel supervisory board members Anthony Burgmans, Karel Vuursteen and Kees van Lede all face a conflict of interest. The other companies they advise are involved in a potential bid for Azko Nobel’s subsidiary Organon. Burgmans and Vuursteen work for CVC, Van Lede has connections to JPMorgan, the Financieele Dagblad says

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