Mon 29 Jan 2018
News - X Principles of Corporate Governance of the Luxembourg Stock Exchange
X Principles of Corporate Governance of the Luxembourg Stock Exchange

For more than 11 years now, the aim of the “X Principles of Corporate Governance of the Luxembourg Stock
Exchange” hereinafter the “X Principles”, has been to provide companies with guidance in the application of
their corporate governance rules. The X Principles have successfully evolved in line with the changes that
have occurred in the applicable regulations and market practices.

The significant advances that have thus been achieved by listed companies in the application of the X Principles
since their introduction demonstrate how useful they have been as a tool, but also underline the need to
continue to monitor regulatory developments, so that the X Principles can continue to serve listed companies.
The working group set up by the Luxembourg Stock Exchange to revise the X Principles is made up of
representatives of listed companies and of the Stock Exchange. It has sought to determine a golden mean
between regulation that is excessively prescriptive and regulation that is purely abstract – a complex task
if ever there was one.

This third revision of the X Principles is the result of work begun ten months ago, and confirms the commitment
of companies to a demanding system of corporate governance combining transparency, responsibility and
control. The aim of the X Principles is certainly not merely to reiterate the legal provisions in force, but to
complement those provisions.

This revision of the X Principles is designed in particular to introduce an approach to extra-financial information
relating to companies’ corporate social responsibility. By thus facilitating a stronger integration of financial
and non-financial data, such companies will give investors a better understanding of their strategy for
creating value and their global performance. In order to achieve that goal, it has been decided to introduce a
new Principle 9 on companies’ corporate social responsibility and to integrate Principle 6 (Evaluation of the
performance of the Board) in Principle 2 (The Board of Directors’ remit).

The result, which has been approved by the Luxembourg Stock Exchange, amounts to a set of strict,
practical and useful rules. Finally, I would like to thank my working group colleagues for their dedicated
commitment to the improvement and modernisation of the X Principles.


See the documents in EN and FR below.