A governance code is a set of recommendations designed, according to its authors, to ensure the implementation of best practices in the organization and functioning of the board of directors.
Today, there are several hundred such codes around the world—sometimes multiple codes within a single country. This is the case in France, where the financial market regulator recognizes two codes: the AFEP-MEDEF Code and the Middlenext Code.
These governance codes fall under what is known in legal terms as soft law. Indeed, the term code can be misleading, as these are not laws passed through a legislative process, but rather self-regulatory texts issued by employers’ associations.
