CORPORATE GOVERNANCE Codes
The Bucharest Stock Exchange Corporate Governance Code is a set of principles and recommendations for companies whose shares are admitted to trading on the regulated market. The Code aims at building an internationally attractive capital market in Romania, based on best practices, transparency, and trust. The Code was issued in September 2015 and needs some updates to improve the relationship with all stakeholders, not only with shareholders and to implement ESG principles. The current Code, accompanied by the Manual for Reporting Corporate Governance and the Compendium of corporate governance practices are published in Terms and Guides section.
Romanian Financial Supervisory Authority Regulation no. 2/2016 on the application of the principles of corporate governance by the entities authorised, regulated, and supervised by the Financial Supervisory Authority, with subsequent changes is a local regulation applicable only to certain entities. The Regulation is published in Terms and Guides section.
Austrian Corporate Governance Code was published by the Austrian Working Group for Corporate Governance in January 2020. The current Code is published in Terms and Guides section.
Corporate Governance Code applicable to companies listed on Prague Stock Exchange was published by Deloitte and Czech Institute of Directors in 2018. The document is published only in Czech – a summary is provided in English here https://iclg.com/practice-areas/corporate-governance-laws-and-regulations/czech-republic.
The G20/OECD Principles of Corporate Governance help policy makers evaluate and improve the legal, regulatory, and institutional framework for corporate governance, with a view to supporting economic efficiency, sustainable growth, and financial stability. First published in 1999, the principles have since become the international benchmark. In 2015, the updated principles were endorsed by the OECD Council and the G20 Leaders’ Summit. In January 2022 OECD Council decided to open accession discussions with six candidates to OECD Membership – Argentina, Brazil, Bulgaria, Croatia, Peru and Romania. Consequently, it is expected that Romania will adhere to G20/OECD Principles of Corporate Governance during next months. OECD Principles of Corporate Governance is published in Terms and Guides section.
UK Corporate Governance Code operates on a ‘Comply or Explain’ basis. Under the Financial Conduct Authority (FCA) Listing Rules, listed companies are expected to align their business with the Principles of the Code but may choose whether or not to comply with its Provisions. Carefully considered corporate governance policies and practices along with high levels of transparency can lead to improved levels of trust. This allows investors to take a more considered view of the governance of the company, particularly where explanations have been provided. UK Corporate Governance Code is published in Terms and Guides section.