some oecd countries

8/19/2019 Some OECD Countries

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some OECD countries, state-owned enterprises (SOEs) still

accounting for a signicant part of GDP, labor force and

capital State enterprises are often common in t!e industr" o#er

public ser$ices and infrastructure suc! as energ", transport and

telecommunications

information, is t!e industr" t!at its performance is $er" important for t!e part

large population and ot!er economic sectors So corporate go$ernance in business

State enterprises need special attention to ensure a positi$e contribution

on o$erall economic e%cienc" and competiti$eness of t!e nation E&perience

'!e OECD also found t!at good go$ernance of state enterprises is conditional

Prereuisite for t!e pri$atiation of state enterprises ac!ie$e economic e%cienc"

!ig! as it will ma*e t!e business more attracti$e in t!e e"es of potential in$estors

performance and increase t!e $alue of t!e business

Some countries are not OECD members also !a$e +oint bloc*

$er" large state, and in some cases also a c!aracteristic

ig!lig!ts of t!e econom" an" countries in t!is ongoing

organiational reform and management of state-owned enterprises, as well as

en!anced

e&c!ange of e&perience wit! OECD countries to support reforms at t!e le$el

nation

.t is in t!is conte&t, in /une 0110 Steering Committee

CG !as as*ed t!e OECD 2or*ing Group on Pri$atisation

Corporate Go$ernance and Propert" of t!e State Propert" construction OECD

a set of non-mandator" Guidelines and best practices on good go$ernance

in SOEs 2or*ing Group, including representati$es from t!e

OECD member countries and obser$ers t!at t!e 2orld 3an* and .4,

conducted a compre!ensi$e consultation during construction of Direction

'!is lead Group !as consulted a large number of sta*e!olders suc! as

members of t!e 3oard and E&ecuti$e Director enterprises

t!e state, t!e state audit agenc", trade unions and national Ps



5ssembl", and !as conducted man" consultations wit! countries not

members of t!e OECD '!e draft of t!e Guidelines was publis!ed in

OECD website for public consultation and recei$ed a number of

6arge useful comments and constructi$e '!e feedbac* was

publicl" a$ailable on t!e OECD 2eb site

inistr" Guidelines s!ould be seen as complementar" to t!e Code of Conduct

OECD Corporate Go$ernance inistr" of Guidance is based on t!e

Corporate Go$ernance Principles and OECD full" compatible wit! t!e

'!is principle inistr" of Guidance towards specic issues of go$ernance

Companies in t!e state-owned enterprises, considered t!e state as an owner,

and focus on policies to ensure good corporate go$ernance owe$er t!e

Guide did not intend to pre$ent t!e ember States and not

OECD members implement policies or pri$atiation program

'!eir c!emistr"

O$er t!e "ears, t!e reasons for t!e state-owned commercial enterprises

'rade $ar" between countries and often include a mi&

social benets, economic and strategic E&amples of t!is include t!e main reasons

de$elopment of industries and regions, ensure t!e pro$ision of public ser$ices,

and t!e e&istence of so-called e&clusi$e 7natural7 owe$er, for se$eral decades

6ast "ear, mar*et globaliation, tec!nological c!ange, and t!e lifting

t!e control of t!e former monopol" mar*ets !a$e spar*ed demands

c!anges and restructuring of t!e state sector '!ese de$elopments

sur$e"ed in two recent OECD report was used as t!e

t!e basis for t!is Guide

'o perform t!eir own functions, t!e State ma" be entitled

benet from t!e use of t!e tools t!at t!e pri$ate sector is applied, including

bot! t!e Corporate Go$ernance Principles of t!e OECD '!is is especiall" true

State enterprises were listed owe$er, now !ome

2ater also !as its own go$ernance c!allenges One of t!e c!allenges

t!at state-owned enterprises often face e&cessi$e state enforcement



its owners!ip and deep inter$ention into business operators

wit! political moti$es, or $ice $ersa, t!e state enforces propert" rig!ts too

Passi$e or remotel" 5lso, accountabilit" ma" also su#er

signicantl" reduced due to state-owned enterprises are often protected from two

clues

t!reatening $ital for companies from t!e pri$ate sector .t is t!e acuirer and

ban*rupt ore importantl", t!e di%culties in corporate go$ernance in business

state stems from t!e fact t!at t!e responsibilit" for t!e e#ecti$eness of

State enterprises related to a series of bodies (3oard

Director, 3oard of Directors, Propert" O%ces, ministries, go$ernment) t!at t!e

identif" t!e responsible person is not eas" .n a structure

comple& networ*s suc! responsibilities, ensuring e#ecti$e decision

results and good corporate go$ernance is a c!allenge

Since t!e purpose of t!e Guidelines is to pro$ide general recommendations

assist go$ernments in impro$ing t!e e%cienc" of public enterprises

countries, t!e application of t!e Guidelines on t!e state of corporate go$ernance

tools

ma" need to be decided on t!e basis of fact ainl" t!e inistr" of Guidance

aimed at state-owned enterprises operating under a legal framewor* Separatemanagement (ie, separate from t!e public administration) and wit! acti$ities

commercial (ie a ma+orit" of re$enue from operating acti$ities

business), w!et!er enterprises pursue public polic" ob+ecti$es or

not '!ese businesses can operate freel" in t!e ne&t sector

competition or restrict economic competition 2!en needed, t!e Guide distributed

SOEs distinction between listed and unlisted companies, or between

state enterprise w!oll" owned, ma+orit" or minorit" as issues

corporate go$ernance problems in eac! case di#er inistr" Guide

can also be applied to subsidiaries of companies mentioned

abo$e, w!et!er listed or not listed

5lt!oug! t!e Guidelines are primaril" used for business

commerce b" t!e central go$ernment and federal owners!ip, administration



local le$el can also use t!e Guide for businesses

t!eir '!e Guide is also useful for SOEs

noncommercial implementation of public polic" goals in particular, w!et!er

acti$e form of t!e compan" or not '!e sales of all t"pes

State enterprises are run professionall" and appl" management practices

Good will bring enormous benets to t!e go$ernment and t!e w!ole societ"

.n t!e Guide, t!e term 7state enterprise7 refers to t!e

State enterprises t!at !a$e control t!roug! full owners!ip

t!e ma+orit" or minorit" important owe$er, man" still can guide

appl" in cases w!ere t!e state owns a relati$el" small part in

but now pla"s t!e role of s!are!olders is responsible and understanding

Similarl", 7t!e owner of7 refers to t!e state agencies under

responsible for performing t!e function of state owners!ip, w!et!er t!e organiation

is

a specic ban in a suite, an autonomous agenc" or ot!er agencies 6aug!

4inall", +ust as in t!e OECD Guidelines, t!e term 75ssociation

3oard 7is used in t!is boo* co$ers t!e basic model

3oard structure di#erent companies e&ist in t!e ember States

and not members of t!e OECD .n t"pical two-tier model e&ists in

some countries, 7t!e 3oard7 refers to t!e 7Council of Control7

w!ile 7*e" management personnel7 refers to t!e 73oard of Directors7

'!e following document is di$ided into two parts '!e Guide presents

in t!e rst part of t!e document co$ers t!e following areas8 i) Ensure a

6egal framewor* and Performance anagement for Enterprise ousing

countr"9 ..) State pla"s :ole Owners9 ...) 'reatment wit! Eualit"

S!are!olders9 .;) :elations!ip wit! :elated Parties .nterest9 ;) ing

'ransparenc" and Disclosure9 ;.) '!e responsibilities of t!e 3oard of

State enterprises Eac! section is prefaced wit! a Principle

as bold and italics, followed b" a number of elementar" principle of

some oecd countries

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