Bucharest Stock Exchange makes new corporate governance code

The Bucharest Stock Exchange (BVB) will soon announce a new code of corporate governance which listed companies should comply with. “Because we are in the beginning with this matter, I don’t want us to have an unrealistic code of corporate governance that only two or three companies can meet. The most important provisions of the Code will refer to things like the general policy to grant dividends, the level of management salary, but we’ll also require companies to tell investors what policy and expenditure they have with sponsorships and donations,” said Ludwik Sobolewski, general manager of BVB, cited by local Wall-street.ro. “If a certain company violates certain provisions of the Code, its only obligation will be to report this to the market and to explain to investors why it didn’t follow the rules. I don’t think the use of penalties would be a good motivator for the companies,” he added. Irina Popescu, irina.popescu@romania-insider.com