Several Romanian state-owned firms, exempt from professional management

Several state-owned companies such as the national airline Tarom, the Official Gazette, and the State Protocol Administration could be exempt from the obligation to have a professional management, according to an amendment introduced yesterday by the Senate’s economic committee and the committee for regional development. Senators drafted a list of state-owned firms that will be exempt from the law on corporate governance. The draft proposal initially aimed to include only the National Meteorological Administration to a very small list of exceptions, reports local Hotnews.ro. The law on corporate governance already had two exemptions, namely the companies Rasirom and Romtehnica, considered to carry out “activities of national interest and activities specific to national defense and security”. However, the senators decided to include other state-owned companies as well, which are not related to the production or trade of arms or war materials. At the end of March, state-owned lenders CEC Bank and Eximbank were also exempt from the obligation to have a professional management through an emergency ordinance. The law on corporate governance, issued in 2011, aimed to bring more transparency in the management of state-owned companies. The exemptions could thus result in less transparency in the management of these companies. editor@romania-insider.com