Every of us evolves. It is hard to compare the person the I am now with the one from 10 or even 20 years ago. I am sure that this is applicable for each of us: we have (usually) more experience, more kilograms, more wrinkles. For some of my friends, members of family and acquaintances, less hair. As you see I have not indicated the gender for keeping the appearance of gender balance.
The companies, the management and the culture of companies evolve. This fact remains true, but the environment in which companies, their shareholders and wider stakeholders operate continues to develop rapidly.
Companies listed on Bucharest Stock Exchange need to report on corporate governance based on the same ‘new’ Corporate Governance Code issued in September 2015 and applicable starting with January 2016. I mentioned ‘new’ as this is the way how is presented on the website of Bucharest Stock Exchange.
Circle of the reform for a code (if is not going around in circle) implies:
- Studying the market and the needs for an update
- Elaborating the drafts
- Consultation phase with the beneficiaries and entities in the scope
- Enacting the new code
- Following the implementation of the new code
and after a reasonable period of time the process needs to start again.
The UK Corporate Governance Code is in process of consultation for being updated. The current one was issued in July 2018. The provisions from 2018 UK Corporate Governance Code contain many principles that are not yet discussed for Romanian listed companies, as:
- the company’s purpose, values, and strategy
- succession planning
- diversity of gender, social and ethnic backgrounds,
- material votes against shareholders resolutions.
Considering the fact that a code from 2015 is not really new and a reasonable period of time of almost 8 years already passed, it is expected that Bucharest Stock Exchange starts the process for updating the code, considering the developments from the last years.