about us | newsletter | contact | archive | members area
Bogdan Nitulescu, Tremend
Cryptocurrencies volatility is a big problem»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

Fondul Proprietatea concerned about draft proposing exemption of state-owned companies from corporate governance

Fondul Proprietatea expresses significant concerns about a new legal draft, currently discussed in the Commitees of the Chamber of Deputies, which proposes the exemption of 100 major state-owned companies (SOEs) from the enforcement of corporate governance legislation currently in force. Some of the most valuable Romanian SOEs, operating in vital sectors, are targeted, including: Hidroelectrica, Nuclearelectrica, Bucharest Airports

2018-09-24 14:06:02

Fondul Proprietatea is appalled that the amendments are largely the same as those declared unconstitutional by the Constitutional Court in February 2018. The plenum of the Chamber of Deputies may vote on the issue this week.

If adopted in its current form, the exemption of 100 state-owned companies from corporate governance would represent a major step back in terms of economic credibility, according to FP representatives.

Commenting on the particularly severe implications of this proposal, Johan Meyer, CEO of Franklin Templeton Investments Limited and Portfolio Manager of Fondul Proprietatea said: "State-owned companies are owned by all Romanians who are perfectly entitled to have access to information on their situation and evolution. If corporate governance exemptions are adopted for so many state-owned companies, there will no longer be any obligation for them to periodically report any financial or operational information. We will most likely enter an era of total darkness in which we will no longer know anything about the performance of the SOEs, apart from learning a year or two down the road that some of the most successful Romanian companies, will then be on the verge of insolvency and we would be left wondering what happened in the meantime. This would be similar to letting Ali Baba's 40 thieves into a bank vault, switching off the lights and the alarm system and then pretending to be surprised at the outcome. I am amazed that such a detrimental action would even be considered in view of Romania's objective of becoming an Emerging Market country."

Fondul Proprietatea urges the Parliament to carefully consider the major negative impact of these exemptions and decide against adopting this infamous black-list of companies excepted from corporate governance.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  511 Views
Daily Info
Skanska delivers the first building of the Campus 6 office project in Bucharest

Skanska inaugurates Campus 6.1, the first completed building in Campus 6, a project that marks the expansion of Skanska Romania in the Center - West area of the capital.

ArcelorMittal receives binding offer for European assets from Liberty

British-owned Liberty announced a conditional agreement to buy four European steel plants, employing more than 12,500 people.

Marco Eichhorn appointed general manager of Radisson Hotel in Bucharest

The Radisson Hotel Group, one of the world's largest hotel groups, has announced Marco Eichhorn as general manager of two hotels in the Romanian capital.

Crosspoint Real Estate appointed exclusive sale agent for H Pipera Lake residential project in northern Bucharest

Crosspoint Real Estate has been appointed exclusive agent for the sale of the units in H Pipera Lake residential project, developed by Hagag Development Europe.

Belgian real estate developer WDP to launch new 75 million Euro projects in Romania

WDP kicked off its Investor Day in Romania by announcing an additional investment volume of around 75 million Euro, amounting to some 130,000 sqm in property, both through new...

 
 
   
advertising

advertising

advertising

advertising

advertising

More on News
ArcelorMittal receives binding offer for European assets from Liberty

British-owned Liberty announced a conditional agreement to buy four European steel plants, employing more than 12,500 people.

Belgian real estate developer WDP to launch new 75 million Euro projects in Romania

WDP kicked off its Investor Day in Romania by announcing an additional investment volume of around 75 million Euro, amounting to some 130,000 sqm in property, both through ...

Skanska delivers the first building of the Campus 6 office project in Bucharest

Skanska inaugurates Campus 6.1, the first completed building in Campus 6, a project that marks the expansion of Skanska Romania in the Center - West area of the capital.

Crosspoint Real Estate appointed exclusive sale agent for H Pipera Lake residential project in northern Bucharest

Crosspoint Real Estate has been appointed exclusive agent for the sale of the units in H Pipera Lake residential project, developed by Hagag Development Europe.

President Iohannis: Interconnection projects revealed at Three Seas Initiative summit are a top level political signal

The list of priority interconnection projects presented within the Summit of the Three Seas Initiative is "a top level political signal", on Tuesday stated Klaus Iohannis, ...

President Iohannis to hold CSAT meeting on September 4 for budget revision

Romanian president Klaus Iohannis has summoned on September 4 the members of the Supreme Council of National Defence (CSAT) to approve the budget revisions for institutions...

1 Comment

New Government reshuffle in Romania to take place in October

A new reshuffle of the Government is supposed to take place in early October, according to the Socialist-Democrat Party (PSD) Liviu Dragnea. He said that, together with the...