We evaluate the corporate governance policy of the EU. The EU adpoted a series of community legislations for stengthening the protection of shareholders and other financial investors and facilitating a free choice and transfer of incorporation places by firms. We argue that the regulatory harmonization is not an efficient way for enhancing the protection of shareholders and other financial investors. But the EU legislations imposed for this objective are not so mandatory ad to make the regulations of all the member countries uniform. This is because, in the community policy-making and implementation process, the set of forces wanting to enlarge the community intervention scope is checked by the set of forces wanting to keep the policy-making and implementation process, the set of forces wanting to enlarge the community intervention scope is checked by the set of forces wanting to keep the ploicy autonomy of the menber countries as highly as possible.