The new corporate governance code created by Bucharest Stock Exchange, which next year will come into force, will require listed companies to present a clear dividend policy.
Bucharest Stock Exchange, in cooperation with the European Bank for Reconstruction and Development, is working to develop a new code of corporate governance for listed companies. Until now, the penalty for unpublished reports and for violating the rights of minority shareholders were rare and patchy.
Ludwik Sobolewski, CEO of BVB, recognizes that in last years the approach has been very liberal, and companies could avoid penalties for violation of order by presenting the reasons for non-compliance of the law, applying the principle of „comply or explain” (you follow laws or you explain why you don’t do it). Ludwik Sobolewski believes that the solution is to tighten sanctions on the stock market, so that future action based on the principle of “comply or inform” (you follow laws or tell the market why you break the law “).
“If a company fails to comply with certain corporate governance rules, will be obliged to inform the Stock Exchange by using current report within a maximum of 24 hours. Investors should be informed in due time about the actual situation of the companies,” said Ludwik Sobolewski at a conference organized by the consulting firm Deloitte .
Sources: zf.ro, romania-insider.comTags: BSE, BVB, ludwik sobolewski