- Disclosure and quality of transparency are important factors for listed companies.
- Current findings of issuers monitoring were considered when revising the Bucharest Stock Exchange Corporate Governance Code.
Bucharest Stock Exchange (BVB), with the support of the Romanian Investor Relations Association (ARIR), performed the monitoring of the companies listed on the BVB main market, based on their ‘comply or explain’ statement against the current Corporate Governance Code, for the 2022 and 2023 financial years. The findings of this monitoring exercise were considered when drafting the revised version of the Corporate Governance Code, now under public consultation. The aggregate report of the monitoring is presented in the attached Appendix.
Monitoring corporate governance disclosure is crucial for issuers because it ensures transparency and accountability, which are fundamental for maintaining investor confidence and attracting investment. Adequate disclosure provides stakeholders with essential information about the company's directors and management practices, policies, and decision-making processes, enabling investors to make informed decisions. Additionally, robust governance monitoring helps mitigate risks associated with management misconduct or ethical breaches, safeguarding the company's reputation and long-term sustainability. This oversight is a regulatory requirement but also a strategic approach to enhance corporate integrity and stakeholder trust.
This monitoring against the Corporate Govrnance Code is part of the project launched by BVB and European Bank for Reconstruction and Development (EBRD) at the beginning of 2024 and meant to review the Bucharest Stock Exchange Corporate Governance Code, together with its reporting and monitoring mechanisms. An aggregate report of the issuers monitoring against the Corporate Governance Code reccommendations will be prepared and disclosed on an annual basis.
The review of the Code is designed to support listed companies improve their governance and reporting quality, by aligning with EU regulatory changes affecting governance structures, the latest G20/OECD Corporate Governance Principles and best practice in the field. BVB and EBRD are supported in this process by a dedicated working group of governance experts from the General Secretariat of the Romanian Government, the Agency for Monitoring and Evaluation of Performance of Public Enterprises, the Financial Supervisory Authority, Romanian Investor Relations Association and Envisia-Boards of Elite.