PESCO AG is a privately owned company organized under Swiss law. The statutory corporate law set out in the Swiss Code of Obligations (CO) is the main source of Swiss corporate governance regulation. The CO applies to private and public companies. The current governance rules of the CO are rather liberal and provide companies with considerable flexibility, which is why PESCO has looked for a more strict corporate governance regime.
On request of the UK government James Wates CBE, Chairman of the Wates Group, in 2017 chaired the Coalition Group that developed new corporate governance principles for large privately-owned companies. The Coalition Group of which the UK’s Financial Reporting Council (FRC) is secretariat, was established in response to the Green Paper Consultation on Corporate Governance Reform in the UK. This is to encourage high standards of corporate governance and reflect the impact that large privately-owned companies have on society and the economy.
According to Mr.Wates CBE:
I believe that good business, well done, is a force for good in society. The Wates Corporate Governance Principles are a tool for large private companies that helps them look themselves in the mirror, to see where they’ve done well, and where they can raise their corporate governance standards to a higher level. Good corporate governance is not about box-ticking It can only be achieved if companies think seriously about why they exist and how they deliver on their purpose then explain – in their own words – how they go about implementing the principles. That’s the sort of transparency that can build the trust of stakeholders and the general public.
With its objective of transparency PESCO is committed to adhere to these principles and implement them in its corporate management structure. These principles concern:
- Purpose and Leadership
- Board Composition
- Director Responsibility
- Opportunity and Risk
- Shareholder Relationships and Engagement
Mr. Watson quote courtesy of FRC