Summary
The X Principles have been drawn up for limited companies with a single-tier governance structure (with a board of directors), which is the form most commonly adopted by companies in Luxembourg. However, they are also intended to apply to other forms of companies, including those with a two-tier governance structure, including a supervisory board and an executive board. In this case, the X Principles must be interpreted and applied mutatis mutandis. The X Principles include three series of rules: the actual mandatory (“compliance”) Principles; the “comply or explain” Recommendations (that is to say, those which are mandatory save in exceptional justified circumstances); and the Guidelines, which are indicative but not binding.
![Thumbnail image for The X Principles have been drawn up for limited companies with a single-tier governance structure (with a board of directors), which is the form most commonly adopted by companies in Luxembourg. However, they are also intended to apply to other forms of companies, including those with a two-tier governance structure, including a supervisory board and an executive board. In this case, the X Principles must be interpreted and applied mutatis mutandis. The X Principles include three series of rules: the actual mandatory (“compliance”) Principles; the “comply or explain” Recommendations (that is to say, those which are mandatory save in exceptional justified circumstances); and the Guidelines, which are indicative but not binding.](https://carrotsandsticks.net/media/gawdnwy5/105_1_luxembourg_2017.png)
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