International Review of Business Research Papers Vol. 5 No.1 January 2009 Pp. 405- 412 Corporate liability and Internal Supervisory Body: An Italian Evidence Giuseppina Gandini and Francesca Gennari 1 The aim of this work is observing relations between governance bodies in case of establishment of a compliance function in order to reduce the corporate liability connected with risks of illegality. In particular, a more detailed study is made of the conformation and functions of the Supervisory Body, appointed – according to Legislative Decree 231/2001 - to “vigil” upon the Model of organisation, management and control with the intent to exempt the body from liability in the case of the crimes contemplated by said Decree. The empirical analysis was conducted on information conveyed through the Internet sites of the 29 banks quoted in the four segments of the Italian Stock Exchange. More specifically, in order to ensure the greatest possible effectiveness of the system, the Supervisory Body should be set up as a structure with clear role in comparison with other forms of internal control. Field of Research: Management, Corporate Governance 1. Introduction Over the last few decades, the international legal scenario has been characterised by a widespread attempt to improve company governance, based on the principle of a fair valorisation of all social players, respecting the values of substantial impartiality, correct behaviour, transparency in information transmitted internally and externally, global responsibility. In this context, we can collocate the numerous legal interventions by the main organisations operating at international level and qualifying their actions on the basis of the enunciation of universally valid principles, respect for which must necessarily be adopted in the company’s sphere of responsibility in order to safeguard and guarantee economic development based on equality. Added to such interventions are those coming from organisations including a limited number of nations (such as the EU) and those of national origin (by national law, Supervisory and Control authorities, associations representing companies operating in specific sectors, the companies themselves by means of internal self-regulation). Giuseppina Gandini, Full Professor of Business Administration, University of Brescia (Italy) email: gandini@eco.unibs.it Francesca Gennari, Assistant Professor of Business Administration, University of Brescia (Italy) email: fgennari@eco.unibs.it