1887

Implementing the OECD Guidelines on Corporate Governance of State-Owned Enterprises: Review of Recent Developments

image of 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.

English

.

The responsibilities of the boards of state-owned enterprises

Boards play a central function in corporate governance and performance of state-owned enterprises (SOEs). The board has the ultimate responsibility, including through its fiduciary duty, for developing corporate strategies and overseeing SOE performance. In this capacity, the board acts fundamentally as an intermediary between the state as a shareholder the company and its executive management. This role is no less important in SOEs than in private companies. According to the OECD Guidelines on Corporate Governance of State-Owned Enterprises, the board should be charged with the duty to act in the interests of both of the state and the company. With the widespread commercialisation of SOEs in recent decades, governments have made efforts to professionalise boards of directors and to give boards greater power and autonomy. This chapter highlights national practices regarding the nomination, responsibilities, composition, training programmes, and evaluation of SOE boards of directors.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error