Financial Crime World

Macedonia’s Corporate Governance Framework in Need of Overhaul, Say Experts

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A recent report assessing Macedonia’s corporate governance policy framework and enforcement practices has highlighted both improvements and areas that require urgent attention. The study evaluated the country’s regulatory landscape, enforcement mechanisms, and compliance practices, making several key recommendations to enhance transparency, accountability, and investor confidence.

Disclosure Framework Needs Overhaul

Experts agree that the disclosure framework is in dire need of an overhaul, with a focus on requiring shareholders to disclose all direct and indirect ownership. This move would significantly improve transparency and allow investors to make more informed decisions.

Key Recommendations:

  • Require shareholders to disclose all direct and indirect ownership
  • Improve transparency and enable investors to make informed decisions

Enhanced Authority for MSEC

The report also called for increased authority for the Macedonian Securities and Exchange Commission (MSEC), enabling it to impose stricter sanctions on non-compliant companies. Furthermore, MSEC was urged to develop a strategy to utilize its enhanced powers to promote corporate governance and strengthen shareholder rights.

Key Recommendations:

  • Increase authority for MSEC to impose stricter sanctions on non-compliant companies
  • Develop a strategy to promote corporate governance and strengthen shareholder rights

MSE Recommendations

The Macedonian Stock Exchange (MSE) was recommended to:

  • Finalize the drafting of a corporate governance code
  • Revise its listing rules in line with the new Securities Law
  • Consider introducing a “corporate governance tier” to recognize companies that demonstrate exceptional standards
  • Fully implement an electronic information dissemination system to facilitate timely access to critical company data

Key Recommendations:

  • Finalize the drafting of a corporate governance code
  • Revise listing rules in line with new Securities Law
  • Introduce a “corporate governance tier”
  • Implement an electronic information dissemination system

Implications for Macedonia’s Banking Sector

The report’s findings are expected to have far-reaching implications for Macedonia’s banking sector, where corporate governance has long been a topic of concern. By addressing these recommendations, the country can take a significant step towards strengthening its regulatory framework and enhancing investor trust in its financial markets.

Key Takeaways:

  • Strengthening corporate governance is crucial for enhancing investor trust in Macedonian financial markets
  • Addressing disclosure and enforcement issues will have a positive impact on the banking sector