In compliance with the Norwegian Code of Practice for Corporate Governance, chapter 1, it is the duty of the board of directors to:
- ensure that the company has good corporate governance,
- provide a report on the company’s corporate governance in the annual report,
- explain if the company does not fully comply with the code.
The Code of Practice also states that the board of directors should
- define the company’s basic corporate values and formulate ethical guidelines in accordance with these values.
The requirement for reporting corporate governance is based on the principle that companies must either comply with the Code of Practice or explain any deviations («comply or explain«). The report must cover every section of the Code of Practice.