HELSINKI: Guest lecture by Klaus Ilmonen, Partner at Hannes Snellman Attorneys Ltd. Topic: "EU Corporate Governance Regulation - Law, Economics or Politics?"

Venue: Futurum

The presentation is based on a pending research project in law at the University of Helsinki on the dynamics of EU corporate governance regulation.

The study is concerned with the observation that EU regulation may have different and even contrary effects across jurisdictions depending on the relevant institutional environment. Different legal strategies may be required to ensure that legal intervention has the desired effects in different institutional environments. However, a further central aspect in developing EU corporate governance regulation is related to the political dynamics of regulatory initiatives. Regulatory responses are the result of political processes and the efforts of affected constituencies pursuing their interest through the markets for regulation. Regulatory outcomes will depend on the evolving preferences of interested constituencies, as well as on the structure of political institutions. In light of the political controversy surrounding the legislative process preceding the adoption of the Takeover Directive, and the current debate related to new EU corporate governance initiative, for example, the political aspects of EU regulation should not be underestimated. The agendas and alliances of affected constituencies and interest groups may differ at the national and the EU levels creating a challenging political dynamic to be taken into account when considering feasible strategies for regulatory intervention at the EU level. The study discusses the characteristics of the EU regulatory processes related to the development of corporate governance regulation. The study considers how the political framework of EU corporate governance regulation affects the choice of legal strategies, and how legal strategies can be developed to reflect the requirements of this framework. The study seeks to provide a basis for the further development of legal and political strategies for EU level regulatory initiatives.