Corporate Governance Country Assessment : Slovenia
This report provides an assessment of the corporate governance policy framework, and enforcement and compliance practices in Slovenia. The country has already upgraded its legislation to meet European Union (EU) Directives, and, its legal and regul...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/05/6594116/slovenia-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/14476 |
| Summary: | This report provides an assessment of
the corporate governance policy framework, and enforcement
and compliance practices in Slovenia. The country has
already upgraded its legislation to meet European Union (EU)
Directives, and, its legal and regulatory framework dealing
with corporate governance issues is now comparable to that
of many EU member states. Strengths and weaknesses are
highlighted, and policy recommendations are made where
appropriate. The major issues are driven by the continuing
transformation of Slovenian companies. Ownership of smaller
companies and some blue chips will likely continue to
consolidate, as strategic investors, and holding companies
acquire control and 100 percent ownership; investor
protection in these companies will require the diligent
enforcement of takeover rules. For the remaining listed
companies and others that will continue to have relatively
dispersed ownership, related party transaction protection,
and improved periodic disclosure are important. The report
recommends that policymakers: 1) require a formal approval
and disclosure process for related party transactions; 2)
consider methods to increase minority representation on
boards; 3) require the disclosure of shareholder agreements;
4) require that the SMA review the content of public company
disclosure; 5) require an audit committee of the supervisory
board for listed companies; and, 6) continue to support
supervisory board training activities. The report also
proposes that institutional investors (including State-owned
funds) develop public voting, and board representation
policies that require board members to act in the best
interest of the company (and thus all shareholders and stakeholders). |
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