An “observe or explain” principle

A Norwegian code of practice for corporate governance was issued in December 2004 by the Norwegian Corporate Governance Board (NCGB), and has been adopted by a number of organisations. This code builds on an “observe or explain” principle, which means that grounds must be given for possible departures from the code. 

The code was revised in December 2005, November 2006 and December 2007. No new principles were added in the latest revision, but some of the principles and comments were revised.

Pursuant to the regulations of the Oslo Stock Exchange, listed companies must publish an annual presentation of their corporate governance principles.

 WW observes the 2007 code. However, a shareholder structure in which a majority owner controls more than 50% of the votes at the general meeting means that it would be inappropriate to implement all the code’s provisions in full.