Institutionalising good governance tools for state-owned enterprises: Governance Code, Regulation on the Nomination and Evaluation of Boards
Institutionalising good governance tools for state-owned enterprises: Governance Code, Regulation on the Nomination and Evaluation of Boards

Author(s): Ecaterina Rusu, Stas Madan
Subject(s): Business Economy / Management, Governance, Political economy, Accounting - Business Administration
Published by: EXPERT-GRUP Centrul Analitic Independent
Keywords: State-owned enterprises; governance challenges; state-owned enterprises;
Summary/Abstract: State-owned enterprises are facing major corporate governance challenges that are eroding the efficiency of state assets management. Political interference in the management of companies, often insufficiently trained board members, formalism, lack of independent board members are just a few examples that go against the principles of good governance. So far, the institutionalisation of good governance instruments has been slow and fragmented, but the current context calls for efforts to be mobilised. The Government's commitments with development partners, in particular the EU and the IMF, foresee strengthening the management of state-owned enterprises. The management of state-owned enterprises can be improved by adopting and implementing properly codes of governance, adopting regulations that foresee competitive procedures for the selection of boards’ members and set up a clear evaluation framework, aimed at enhancing the accountability and motivating boards.

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