BVB, EBRD to Review Romanian Corporate Governance Code

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The Bucharest Stock Exchange (BVB) and European Bank for Reconstruction and Development (EBRD) will collaborate to review Romania’s market corporate governance code, aligning it with recent regulatory changes and global standards.

This initiative aims to enhance governance and reporting quality for listed companies by integrating EU regulatory adjustments, G20/OECD Corporate Governance Principles, and emerging best practices.

The updated code, anticipated by 2024’s end, targets improved guidance on governance issues and stakeholder priorities to bolster corporate resilience in a dynamic environment.

The review process will engage all market stakeholders for input.

EBRD Head of Romania, Victoria Zinchuk, underscores the importance of robust governance for investor confidence and capital efficiency. “Corporate governance is paramount for investors, who rely on robust governance frameworks to assess the integrity and performance of companies, make informed investment decisions and allocate capital efficiently. By promoting disclosure, oversight, and shareholder rights, effective governance enhances investor confidence, lowers the cost of capital, and reduces agency conflicts,” said Victoria Zinchuk, EBRD Head of Romania.

Radu Hanga, BVB Board Chairman, emphasizes the pragmatic alignment of governance practices with evolving frameworks and societal expectations. “These updates are not only about compliance, but also about common sense, about aligning governance practices with evolving regulatory frameworks, industry standards, and societal expectations. By applying the good governance principles, companies can enhance transparency, accountability, and risk management, fostering investor trust and safeguarding long-term sustainability,” said Radu Hanga, Chairman of the BVB Board.

Adrian Tanase, BVB CEO, highlights governance’s role in sustainable value creation and shareholder alignment. Adrian Tanase, BVB CEO added: “Strong governance signals management’s commitment to long-term value creation, including sustainability, aligning shareholder interests with corporate objectives and fostering sustainable shareholder returns. This underscores the crucial role of the Code in the investment landscape, making it a key area of interest for investors.”

The collaboration builds on BVB and EBRD’s history of joint efforts, including prior work on environmental, social, and governance reporting guidelines and the development of the current Corporate Governance Code.

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