The state-owned enterprises and joint-stock companies will have a standard corporate governance code
October 27, Chisinau – The Model Code of Corporate Governance for State/Municipal Enterprises and Joint Stock/Limited Liability Companies with Full/Majority Public Capital has been approved by the Executive.
Its role is to implement the best practices of corporate governance.
The main purposes of the document are as follows:
Providing an adequate framework for corporate governance – The Corporate Governance Code establishes a complex set of measures and rules to guide the behavior of state-owned companies in implementing best practices in corporate governance.
Reducing the risk of corruption – Through the approval and implementation of the corporate governance code, which establishes the adoption of anti-corruption policies and procedures, the implementation of an internal control system, and the promotion of integrity within these state-owned companies.
Transparency and Accountability – The Corporate Governance Code sets out the responsibilities of the management and supervisory bodies, clear reporting standards, and the disclosure of information of public interest. Thus, shareholders and other stakeholders are informed about the activities and performances of state-owned companies, also contributing to increasing trust in these companies.
Improving Financial Performance – By implementing strong corporate governance practices, state-owned companies can enhance their financial performances.
„Priority interventions related to the Corporate Governance Code are provided for both in the National Development Strategy and in sector strategy and they will contribute to achieving the set objectives and corresponding priorities of the commitments in the Association Agreement between the Republic of Moldova and the European Union, and other agreements with the EU,” Vice Prime Minister Dumitru Alaiba mentioned.
The completion of the mentioned project does not involve public financial expenses and does not foresee the modification or repeal of any other legislative acts.