The Bucharest Stock Exchange\u2019s new Code of Corporate Governance was recently presented at a conference organized jointly by BVB and the European Bank for Reconstruction and Development (EBRD) in Bucharest on Wednesday, February 5.\u00a0<\/p>\n
At the conference, representatives of the two institutions, alongside stakeholders of the capital market in Romania and abroad, outlined the importance of corporate governance and sustainable development of the Romanian capital market.\u00a0\u201cThe code will strengthen market dynamics, create the foundation for sustainable growth and ensure engagement of companies with their investors to maximize the transformative potential of corporate governance reforms,\u201d stated Victoria Zinchuk, EBRD Director for Romania.<\/p>\n
Adrian T\u0103nase, BVB CEO, added that the Code will contribute to Romania\u2019s accession to the Organisation for Economic Co-operation and Development (OECD). \u201cGood governance illustrates, among others, the harmonisation of stakeholders\u2019 interests with the company\u2019s interests. Any investor, when deciding to invest in a company, will do so because they see the story of growth behind that business, as well as the corporate governance applied by the company,\u201d he added.<\/p>\n
With the help of public and private sector partners, BVB initiated the revision of the Code of Corporate Governance in May 2024 in order to bring it in line with the recent regulatory changes. The main purpose of the code is to support issuers\u2019 corporate resilience in a rapidly changing world, to increase market resilience and access to capital and to foster innovation and sustainable practices.\u00a0<\/p>\n
\u201cThe additions to the Code of Corporate Governance made by the relevant experts, with EBRD\u2019s support throughout this process, feature the natural development, the harmonization of the code provisions with the recent regulatory amendments, with the best practices in the industry, with the latest Corporate Governance Principles of the Organisation for Economic Co-operation and Development (OECD) and with market participants\u2019 priorities,” stated Radu Hanga, President of the BVB Board.<\/p>\n
The Code follows the \u201ccomply or explain\u201d approach, which provides companies with the flexibility to decide which practices to adopt in order to ensure the effectiveness of their governance. When a company does not comply with a Provision of the Code, it should provide an explanation why it has not done so.\u00a0<\/p>\n