Implementing the OECD Guidelines on Corporate Governance of State-Owned Enterprises: Review of Recent Developments
The OECD Guidelines on Corporate Governance of State-Owned Enterprises have provided an internationally agreed benchmark to help governments assess and improve the way they exercise their ownership functions since 2005. This report documents changes in state ownership and SOE governance in both OECD and partner economies and assesses the extent to which the Guidelines have served as a “roadmap for reform” in individual countries since 2015, following the most recent update of the Guidelines. Drawing on practices in up to 31 jurisdictions, it covers organising the state enterprise ownership function; safeguarding a level playing field between SOEs and private businesses; equitable treatment of shareholders and other investors; stakeholder relations and responsible business; transparency and disclosure practices; and professionalising boards of directors. The report supports policy makers by facilitating greater awareness and more effective implementation of the Guidelines.
Equitable treatment of shareholders and other investors
According to the OECD Guidelines on Corporate Governance of State-Owned Enterprises (SOE Guidelines), where state-owned enterprises (SOEs) are listed or otherwise include non-state investors among their owners, the state and the enterprises should recognise the rights of all shareholders and ensure shareholders’ equitable treatment and equal access to corporate information. The state should strive for full implementation of the G20/OECD Principles of Corporate Governance when it is not the sole owner of an SOE, and of all relevant sections when it is the sole owner of an SOE. This chapter presents material changes in national practices concerning equitable treatment of SOE shareholders particularly by subjecting SOEs wholly or partially to national corporate governance codes (or SOE-specific codes where applicable).