APPLICATION OF THE EU-PRINCIPLES IN ROMANIA AND HUNGARY CONCERNING THE BOARDS OF LISTED COMPANIES
APPLICATION OF THE EU-PRINCIPLES IN ROMANIA AND HUNGARY CONCERNING THE BOARDS OF LISTED COMPANIES

Summary/Abstract: Corporate governance ensures that boards are able to exercise appropriate scrutiny over management and that shareholders, as owners of the company, are able to hold boards accountable. As such, a high level of corporate governance contributes significantly to investors' confidence and market stability, thus fostering business efficiency. In 2005 the European Commission launched a recommendation on the boards of listed companies and invited Member States to follow the guidelines. In 2008 both Romania and Hungary launched a new Code of Corporate Governance on the basis of the EU recommendations. In my paper I present the EU principles, and by examining the national codes of Romania and Hungary I analyze to which extent and in what issues these two countries have adopted the EU recommendations. I concluded that by the new codes of corporate governance issued in 2008 Romania and Hungary have followed to a large extent the provisions of the EU recommendation.

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