16th European Corporate Governance Conference materiālos (White Paper) ir atsauces uz Gata Kokina teikto:
[PDF] 16th European Corporate Governance Conference :: White Paper Draft
[PDF] 16th European Corporate Governance Conference :: White Paper
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State-owned enterprises
Gatis Kokins, Chairman of the Supervisory Council of Latvian telecommunications company Lattelecom, which is majority-owned by the Latvian state, gave an example of board best practice. He said that all communication material and documentation for the Supervisory Council’s meetings are distributed through a bespoke internet portal. He argued that the state could help to maintain professionalism and quality in state-owned companies by:
- Setting up a professional and independent selection mechanism for candidates
- Defining clear and prudent criteria for candidates, paying due attention to characteristics such as the company’s sector, size, market and financial condition
- Defining the competence, authority, responsibility and accountability of the board and its members, and ensuring that their performance is measured properly
- Giving suitable training to directors
In Latvia, the law regards state-nominated board members as state officials and places strict limitations on them as a result. This deters experienced professionals from serving on the supervisory boards of state-owned companies. Kokins argued, therefore, that unreasonable restrictions on supervisory board members should be removed and a proper mechanism of performance reporting must be developed. Saucier, who has previously chaired state-owned enterprises, said that governments often deny the boards of state-owned companies the most important tools. For example, if the government appoints the CEO and sets the remuneration for the post, the board cannot have the same accountability as it would in a private corporation.
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Audit committees
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Kokins observed that audit committee members becoming “privileged” board members is a real issue. At Lattelecom, the audit committee always reports to the board after a meeting has taken place to level out information asymmetry. Besides the audit committee, the company also has remuneration and business planning committees. The business planning committee, in particular, also gives good insight to board members.
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Final observations
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Kokins commented that the size of the economy and the size of the company need to be taken into account when discussing supervisory boards — along with to what extent companies in a country are listed on stock exchanges. “What is good for the UK is not valid for Latvia and vice versa.”
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