Corporate Governance Country Assessment : Republic of Croatia
Croatia's corporate governance system is framed by civil law with regulation for traded companies in part based on London securities rules and international standards for accounting and auditing. There are two public exchanges, which both have...
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| Format: | Pre-2003 Economic or Sector Report |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/09/6556076/croatia-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/14530 |
| Summary: | Croatia's corporate governance
system is framed by civil law with regulation for traded
companies in part based on London securities rules and
international standards for accounting and auditing. There
are two public exchanges, which both have three tiers. The
majority of companies are listed on the third tier, which
has the lowest level of disclosure and listing requirements.
The small number of companies on the first tiers has been
reduced recently through the successful takeover of
companies by strategic investors. The corporate governance
structure in Croatia reflects several important aspects of
the recent history of Croatian enterprise, including: a
history of social ownership; the transition to capitalism;
the on-going legacy of privatization; recent economic
distress; and, regional conflict. Interest in corporate
governance is rising with the potential for growth in the
corporate sector being driven by privatization. Improvement
in corporate governance is seen to have the potential for
improving access to capital, and promoting efficient
development of the new private sector. This Report on the
Observance of Standards and Codes benchmarks the Croatian
corporate governance system against the OECD Principles of
Corporate Governance, recognized as one of the core
standards underpinning international financial architecture.
This ROSC highlights a number of areas where Croatia's
corporate governance system can be strengthened: These can
be grouped initially under four headings: disclosure of
ownership and control; the role and effectiveness of
shareholders meetings; the business practices of supervisory
boards; and the audit practices of external auditors. The
recommendations for reform are set out briefly in Section 4
and at greater length in the Annex. |
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