4.4.5 Proposed amendment referring to OECD MNE Guidelines

The Labour Party had proposed an amendment to the act implementing article 1.14 of the Modernisation Directive in the DCC.1 They put forward a new clause requiring Dutch companies to also disclose in their annual report whether they act in compliance with the OECD MNE Guidelines on CSR,2 and if not, to explain why not. They basically wanted to introduce the same formula, "comply or explain", as many European countries have chosen in respect of companies' compliance with corporate governance codes of conduct. Dutch law also requires that listed companies disclose in their annual report whether they comply with the Dutch corporate governance code ofconduct, the Tabaksblat Code and if not, why not.3 The Minister responsible for the implementation act made a show by arguing that the OECD MNE Guidelines cover a completely different subject and that the Guidelines should not infringe upon the territory of financial reporting. The Minister opined that this act only contained technical changes and that the proposed amendment needs to be discussed extensively in Parliament because it would mean a material change to existing laws. Not long before the adoption of the implementation act the amendment was withdrawn, most probably as a result of a political trade-off.4