Unilever positive about Dutch corporate governance code

In the final version of the Code a number of major objections that were previously expressed by Unilever and other stakeholders have been eliminated. This has made the Code even stronger, as it links up better with international standards. Though the definitive Code is still detailed, it is based more on principles than the previous draft. Unilever will be able to comply with the Code to a substantial extent.

"The Tabaksblat Committee has delivered a very important and high-calibre result in the form of this Code", said Unilever chairman Antony Burgmans. "In the Code high requirements are set for the governance of companies. At the same time the Committee has eliminated a number of major objections that were linked to the draft code. I have no hesitation in describing this Code as a historic document and one that will prove to be very important for Dutch business."

Now that the Code is ready, it is important that it is kept properly maintained. Steps should be taken to ensure that changes in the Code are not dictated by incidents. Incidents are damaging, but changing the Code in response to them may be equally damaging. Corporate governance is a very important subject for companies and investors. Vision and continuity are essential elements. In the Netherlands a new committee could be established and given the responsibility for evaluating the Code, for example once every three years. This committee should have a composition similar to that of the Tabaksblat Committee, so that the system of self-regulation is retained. Extensive consultation of all stakeholders remains essential.

Unilever will be able to comply with the Code to a substantial extent. As a big multinational company, and one which also has a dual structure, Unilever will have to depart in some respects from the provisions laid down in the Code. It has the utmost confidence that, where this occurs, it will be able to provide a satisfactory explanation. At the general meeting of shareholders on 12 May 2004 Unilever will deal in more detail with the way in which it will apply the Code.