Corporate Governance and control bodies in Italian listed companies

Corporate Governance and control bodies in Italian listed companies

AUTHOR

Dr Carlo Regoliosi
Associate Professor – Università Roma TRE – Rome, Italy

ABSTRACT

The main aim of this paper is to critically review the existing control systems in the corporate governance of Italian listed firms. Also, taking a cue from the recent defaults of some Italian listed companies, we noticed that the increasing number of control mechanisms and committees inside and outside Italian firms do not necessarily increase the actual firm oversight. In this framework, we tended to consider different forms of controls depending on the stakes that each mechanism or each (internal or external) authority has the mandatory or voluntary duty to oversee. So we found two major stakes: internal and external to the company’s organisation. In the paper, we analysed the relationships among different organisms that laws and practice have contributed to creating: for what concerns control authorities serving external stakes, we consider the activities of “Collegio Sindacale” and the functions of the Financial External Auditing; for what instead concerns control organisations serving internal stakes we considered the duties of “Comitato per il Controllo Interno” and the activities of the Internal Auditing staff. At the end of the paper, we presented our conclusions involving the role of the firm’s leader (the real entrepreneur) in strengthening real powers for the various oversight mechanisms and control organisations inside and outside. We guess that control problems also in very important Italian firms find their main centre in professional and leadership weakness of the chief, in deploying the culture of control at all levels throughout the company.

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