Does the Government Act with Due Care in its Position as the Owner of Significant Enterprises?

The legal firm Deloitte Legal, together with the Czech Institute of Directors (CIoD) presents the Czech wording of the OECD Guidelines on Corporate Governance of State-owned Enterprises.

“In early 2017, together with the CIoD, we managed to bring to the Czech Republic the new wording of the G20/OECD Principles of Corporate Governance, which represent an unquestionable paradigm and model in the field of corporate governance. The Principles provide a framework for recommendations on corporate governance. In terms of state-owned enterprises, this document has been amended by new Methodology Guidelines we would now like to present to you,” says Jan Spáčil, Partner in Charge at Deloitte Legal.

These rules can help governments manage their economic activities more efficiently. Pursuant to the document, the autonomy and independence of the administration bodies of state-owned enterprises is critical, including their transparent and accountable approach to governance. Another important issue is the professionalism and efficiency of the administrative staff.

“Even though compliance with the Principles is optional, we invite the government to require that state-owned enterprises comply with the Principles,” adds Monika Zahálková, the CIoD’s Executive Director.

The opening ceremony during which the publication was presented to the public hosted the Czech Minister of Transportation, Dan Ťok, and the Minister of Industry and Trade, Jiří Havlíček.

“Our Supervisory Board is formed of nine members, three of which represent the employees and six of which comprise experts. As such, political behaviour stops with the Supervisory Board, as corporate governance shall principally be professional, independent and free from political influence. I should like to say that we comply with these principles,” says Pavel Krtek, the Chief Executive Officer of České dráhy /Czech Railways/, who was another participant in the discussion organised by Deloitte and the CIoD.

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