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Gov't endorsed the methodology of enforcement of the Emergency Ordinance on the Corporate Governance of public enterprises
The government on Wednesday endorsed the methodology of enforcement of the Emergency Ordinance on the Corporate Governance of public enterprises, informs a release sent by the Government.
According to the source, within 50 days since the enforcement of the said methodology, the guardianship public bodies will start the selection procedure for the public enterprises for which the provisions of the OUG 109/2011 were not applied.
The enforcement of the new legislation aims to contribute to the improvement of the Corporate Governance by increasing the level of professionalism and performance of the management in the public enterprises and ensuring them a financial and operational performance," the release adds.
The government specifies that as many as 180 state-run public enterprises come under the Corporate Governance rules, and yet only 35 obey them so far.
The said norms set the selection criteria, the up to 5-member short-list drafting for each position of administrator, their top, the procedure regarding the final nominations, the financial and nonfinancial performance indicators and of the variable component of the pay for the Board or supervision, by the case.
Likewise, the general rules are set to drafting the standby letter of intent and declaration, as well as the elements that are to be included by the mandate contracts signed by the guardianship public bodies with the public enterprises administrators.
According to the government, the guardianship public body is only the representative of the state stakeholder, and if the state is majority stakeholder, through the guardianship public body it could lodge proposals to the general assembly of the stakeholders with a view to nominate the administrators by the latter, with observance of the principles of corporate law and of the rights of minority stakeholders.