Belgium: new corporate governance code published

A new edition of the Belgian corporate governance code was published yesterday by Belgium's Corporate Governance Committee. A copy is available here in English. The new code replaces the 2004 edition and applies to reporting periods beginning on or after 1 January 2009. A summary of the main changes, in English, is available here. This document also contains useful information about the changes and the opinions of consultees. 

Two aspects of the new Code have caught my attention. The Belgian Code, unlike the UK's Combined Code, sets out the minimum number of meetings that board committee should have each year. The audit committee, for example, should meet at least four times a year. The Code also contains a new provision concerning directors' severance pay. Provision 7.18 recommends that for contracts entered into on or after 1 July 2009, severance pay should not exceed 12 months' basic and variable remuneration. When the new Code was the subject of consultation last year, a limit of 18 months was proposed.