Table of Contents

  • This Review of Corporate Governance in Estonia is part of a series of reviews of national policies undertaken for the OECD Corporate Governance Committee. It was prepared as part of the process of Estonia’s accession to OECD membership.

  • Following its independence in 1991, Estonia, a country of 1.3 million people, embarked on a path of rapid economic, legal and regulatory change. All governments since then have had a strong commitment to open markets and limited state intervention in the economy. This has allowed Estonia to develop an open, competitive market economy with high rates of foreign direct investment, and strong economic growth up until the global financial crisis, averaging 8.2 per cent from 2001-2007. Estonia’s market-oriented approach has also reflected a policy of rapid political and economic integration with Europe, which led to its admission into the EU in 2004 and to a series of amendments to its capital markets and company law architecture to ensure its consistency with EU directives. Estonia’s capital market, nevertheless, is quite limited, with just 14 companies listed on the Tallinn Stock Exchange’s main listing segment.

  • Following its independence in 1991, Estonia, a country of 1.3 million people, embarked on a path of rapid economic, legal and regulatory change. All governments since then have had a strong commitment to open markets and limited state intervention in the economy. This has allowed Estonia to develop an open, competitive market economy with high rates of foreign direct investment, and strong economic growth up until the global financial crisis, averaging 8.2 per cent from 2001-2007 (OECD, 2009). Estonia’s market-oriented approach has also reflected a policy of rapid political and economic integration with Europe, which led to its admission into the EU in 2004 and to a series of amendments to its capital markets and company law architecture to ensure its consistency with EU directives. Estonia’s capital market, nevertheless, is quite limited, with just 14 companies listed on the Tallinn Stock Exchange’s main listing segment.

  • As noted in the Foreword, the Corporate Governance Committee (then known as the Steering Group on Corporate Governance) was requested to examine Estonia’s position with respect to core corporate governance features and to provide the OECD Council with a formal opinion on Estonia’s willingness and ability to implement the recommendations laid down in the Principles of Corporate Governance and Guidelines on Corporate Governance of State-Owned Enterprises. At the same time, Council requested the Committee to carry out accession reviews on the same basis for four other countries – Chile, Israel, the Russian Federation and Slovenia.