Tightening corporate governance

TO PREVENT AN ENRONtype corporate debacle in Europe, European Union (EU) finance ministers have agreed to consider toughening rules on financial analysts, markets, and corporate governance.

Citing a June due date, the ministers have asked corporate law experts to develop proposals for improved

According to a Reuters news item, a separate group, which was set up before Enron's collapse to look at corporate governance in the EU, will also be asked to consider lessons from Enron and deliver a preliminary report by June. The group's report will address internal controls and the role of independent advisors, audit committees, and external controls, including auditing and accounting practices and the accuracy of financial statements.

In the United States, The Nasdaq Stock Market Inc. also is taking a closer look at corporate governance. Nasdaq's executive committee of its board of directors has approved initial recommendations and proposals from its Listing and Hearing Review Council to enhance corporate governance standards for companies listed on the high-tech stock market. The recommendations have been sent to U.S. Securities and Exchange Commission (SEC) Chairman Harvey Pitt.