Publication: Report on the Observance of Standards and Codes : Corporate Governance Country Assessment, Bulgaria
Date
2002-09
ISSN
Published
2002-09
Author(s)
World Bank
Abstract
Market capitalization of the Bulgarian
Stock Exchange is low at four percent of gross Domestic
Product, having fallen from a peak of seven percent in 1998.
Similarly, market turnover remains low, even by the
standards of transition economies. However in recent years,
Bulgaria has made substantive concrete improvements in its
legal and regulatory framework, in part in preparation of
accession to the European Union. The Bulgarian National
Securities Commission was established in 1996 and subsequent
amendments to both the commercial and securities legislation
strengthened the corporate governance framework. In
particular, the 2001 revisions and amendments adopted in
June 2002 substantially strengthened shareholder rights for
"public" companies. In addition, proposed
additional amendments will ensure pre-emptive rights of
existing shareholders and will require legal entities to
disclose both direct and indirect ownership interests in
Bulgarian companies, where such interests are at five
percent or more of the company. The assessment recommends
three additional areas of improvements: 1) Amend the
Commercial Law to establish a minimum quorum for
shareholders' meetings and strengthen the duties of
members of (supervisory) boards of directors. 2) Encourage
private sector organizations and business associations to
prepare a corporate governance code, encouraging improved
corporate governance practices in the corporate sector. 3)
Encourage the private sector to establish an Institute of
Directors that could provide training and disseminate
international practices for (supervisory) boards of directors.
Citation
“World Bank. 2002. Report on the Observance of Standards and Codes : Corporate Governance Country Assessment, Bulgaria. © Washington, DC. http://openknowledge.worldbank.org/handle/10986/14459?show=full License: CC BY 3.0 IGO.”