World Bank2013-03-142013-03-142007-01https://hdl.handle.net/10986/12722This paper reviews state-owned Enterprises (SOE) corporate governance in Bhutan, outlines SOE compensation and personnel management policies, and recommends policy options to improve state enterprise performance and facilitate greater autonomy in SOE pay and personal management. Following the OECD Guidelines on the Corporate Governance of State Owned Enterprises, the report defines an SOE as any enterprise with state ownership, a distinct legal form (separate from the public administration) and having commercial sales and revenues. This definition includes both wholly owned enterprises and those with minority state ownership. Recommendations are provided, and include strengthening the ownership function by creating a specialized division in the Ministry of Finance to represent the government as a shareholder; regularly monitor and assess SOE performance at the aggregate level; encourage active ownership and the systematic exercising of state ownership right; strengthen board responsibilities, qualifications, and independence; make transparent and explicit subsidies to various categories of consumers through SOEs, and measure the efficiency of their delivery to consumers; focus and streamline Royal Audit Authority (RAA) audits.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGACCOUNTING STANDARDSADMINISTRATIVE MINISTRIESAMALGAMATIONANTI-CORRUPTIONARTICLES OF ASSOCIATIONAUDIT COMMITTEEAUDIT COMMITTEESAUTHORITYBANKRUPTCYBENEFICIAL OWNERSBOARD MEETINGBOARD MEMBERBOARD MEMBERSBOARDS OF DIRECTORBOARDS OF DIRECTORSBONDBOND MARKETCAPITAL EXPENDITURESCAPITAL MARKETCAPITAL MARKET REGULATIONCAPITAL STRUCTURECENTRAL BANKCENTRAL DEPOSITORYCEOCEOSCHAMBER OF COMMERCECHARTERCOMMERCIAL BANKSCOMMERCIAL ENTERPRISESCOMMERCIAL ENTITIESCOMMON LAWCOMMON LAW COUNTRIESCOMPANIES ACTCOMPENSATION PACKAGESCOMPENSATION POLICIESCOMPENSATION POLICYCONFLICT OF INTERESTCONFLICTS OF INTERESTCONSENSUSCONSTITUTIONCONTROLLING SHAREHOLDERSCORP.CORPORATE AFFAIRSCORPORATE ASSETSCORPORATE BOARDSCORPORATE BODIESCORPORATE GOVERNANCECORPORATE GOVERNANCE REFORMCORPORATE MANAGEMENTCORPORATE OWNERSHIPCORPORATE PERFORMANCECORPORATIONCORPORATIONSCOUNCIL OF MINISTERSCREDIT CARDCREDITORSCURRENCYDEBENTURESDEBTDEBT MANAGEMENTDECISION MAKINGDECREEDEMOCRACYDEVELOPING COUNTRIESDEVELOPMENT BANKDEVELOPMENT FINANCEDISCLOSUREDISCLOSURE OBLIGATIONSDISCLOSURE REQUIREMENTSDISCLOSURE STANDARDSDOMESTIC MARKETDUE DILIGENCEECONOMIC DEVELOPMENTEMPLOYMENT GENERATIONENABLING ENVIRONMENTENTERPRISE PERFORMANCEEXPENDITUREFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL PERFORMANCEFINANCIAL PERFORMANCESFINANCIAL RESOURCESFINANCIAL SERVICESFINANCIAL STATEMENTSFINANCIAL TRANSPARENCYFOREIGN EQUITYFOREIGN EXCHANGEGLOBAL CORPORATE GOVERNANCEGOOD CORPORATE GOVERNANCEGOOD GOVERNANCEGOVERNANCE ARRANGEMENTSGOVERNANCE ISSUESGOVERNMENT ACCOUNTABILITYGOVERNMENT AGENCIESGOVERNMENT AGENCYGOVERNMENT COMPANIESGOVERNMENT COMPANYGOVERNMENT EQUITYGOVERNMENT INTERVENTIONGOVERNMENT INVOLVEMENTGOVERNMENT OWNED COMPANIESGOVERNMENT OWNERSHIPGOVERNMENT POLICYGOVERNMENT REVENUEGOVERNMENT SUBSIDYGOVERNMENT SUPPORTHOLDINGHOLDINGSHUMAN RESOURCEHUMAN RESOURCE MANAGEMENTHUMAN RESOURCE POLICIESHUMAN RESOURCESINCORPORATIONINDIVIDUALSINDUSTRIAL COMPANIESINSOLVENCYINSTITUTIONAL FRAMEWORKINSTRUMENTINSURANCEINSURANCE CORPORATIONINTERESTED PARTIESINTERNAL AUDITINTERNAL AUDIT FUNCTIONINTERNATIONAL STANDARDSLABOR MARKETLABOR MARKETSLAWSLEGAL ACTIONLEGAL FORMLEGAL FRAMEWORKLEGISLATIONLEGISLATURELEVEL PLAYING FIELDLIMITEDLOCAL COMPANIESLONG-TERM INTERESTLTD.MAJORITY SHAREHOLDERMANAGERSMANDATESMARKET CAPITALIZATIONMARKET CONDITIONSMARKET DISTORTIONSMARKET PRICEMARKET REQUIREMENTSMARKET VALUEMINISTERSMINISTRY OF FINANCEMINORITY SHAREHOLDERMINORITY SHAREHOLDERSMONETARY AUTHORITYNATIONAL BANKNEGOTIABLE INSTRUMENTOLD-AGE PENSIONSOPPORTUNITY COSTPENSIONPENSION SYSTEMPRESIDENCYPRIVATE COMPANIESPRIVATE SECTOR GROWTHPRIVATE SECTOR PARTICIPATIONPROTECTION OF MINORITY SHAREHOLDERSPRUDENTIAL REGULATIONPRUDENTIAL REGULATIONSPUBLIC ADMINISTRATIONPUBLIC COMPANIESPUBLIC COMPANYPUBLIC RESOURCESPUBLIC SECTORPUBLIC SECTOR PORTFOLIOREGISTERED COMPANIESREGISTRAR OF COMPANIESREGULATORY AGENCIESREGULATORY AGENCYREGULATORY BODIESREGULATORY FRAMEWORKREPRESENTATIVESRETURNSSECURITIESSECURITIES EXCHANGESEPARATION OF OWNERSHIPSETTLEMENTSHARE CAPITALSHAREHOLDERSHAREHOLDERS MEETINGSSOCIAL PROGRAMSSOCIETYSOLE PROPRIETORSHIPSSPECIFIC DUTIESSTAKEHOLDERSSTATE ADMINISTRATIONSTATE BANKSSTATE ENTERPRISESTATE ENTERPRISESSTATE OWNERSHIPSTATE-OWNED COMPANIESSTATE-OWNED ENTERPRISESSTOCK EXCHANGESUBSIDIARIESTAXTOTAL EXPENDITURESTRADINGTRANSPARENCYTRUST LAWTURNOVERVOTINGWorld Bank10.1596/12722