EU Corporate Governance Standards

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EU CORPORATE GOVERNANCE STANDARDS Session II
Bridging the Gap in the EU Candidate and
Potential Candidate Countries Impact and
Challenges of Accession on the Bulgarian
Corporate Governance Framework
Kamen Kolev, Vice President of the Bulgarian
Industrial Association, Member of BUSINESSEUROPE
Brussels, February 20th 2008 European Parliament
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What is BUSINESSEUROPE?
Mission
Purpose
Pillars

• Members FIRST
• Staff about 45 persons
• Supporting network of 34 companies (ASGroup)
• Alliance for a Competitive European Industry
• European Employers Network

• Influence EU policies to create a
  business-friendly environment

• Actively promote and represent business in
  Europe
• Advocate a favourable and competitive business
  environment to foster sustainable economic growth

• The Confederation of European business,
  representative of more than 20 million small,
  medium and large companies
• A Social Partner

Kamen Kolev, Vice President of the Bulgarian
Industrial Association, Member of BUSINESSEUROPE
Brussels, February 20th 2008 European Parliament
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Latest developments and state of art in Bulgaria

• National code on corporate governance adopted
  in October 2007

• Bulgaria succeeded to create a very sound legal
  basis and regulatory framework that allows for
  implementation of CG principles

Kamen Kolev, Vice President of the Bulgarian
Industrial Association, Member of BUSINESSEUROPE
Brussels, February 20th 2008 European Parliament
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Developing the components of CG

• Shareholders
• Special Units/Departments on Investors Relations

• Stakeholders (employees, creditors, investors,
  suppliers)
• CSR practices as integral part of governance
  culture

• Transparency and disclosure
• On-line disclosure

Kamen Kolev, Vice President of the Bulgarian
Industrial Association, Member of BUSINESSEUROPE
Brussels, February 20th 2008 European Parliament
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Lessons learned
and future considerations

• CG is essential for establishing an attractive
  investment climate

• Privatized companies and privatization funds
  were the only JSC in an environment, dominated by
  SMEs

• Good practices in CG are usually brought by
  large multinationals

• For an EU accession economy, CG is an important
  element for full incorporation into the European
  market

Kamen Kolev, Vice President of the Bulgarian
Industrial Association, Member of BUSINESSEUROPE
Brussels, February 20th 2008 European Parliament
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Lessons learned
and future considerations

• To partake at theoretical discussing and
  practical sharing of best practices in CG
• CG should remain voluntary and market driven
  approach

• Employers associations are driving forces in
  promoting CG amongst their members

• The main priority is to concentrate on correct
  implementation at national level of recently
  adopted CG principles

Kamen Kolev, Vice President of the Bulgarian
Industrial Association, Member of BUSINESSEUROPE
Brussels, February 20th 2008 European Parliament
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BUSINESSEUROPE principles on corporate governance

• reference criteria for EU intervention or
  non-intervention on corporate governance
• Subsidiarity
• Principle-based approach
• Market-driven approach
• Comply or Explain
• Transparency and disclosure
• Global orientation
• Competition
• Better regulation

Kamen Kolev, Vice President of the Bulgarian
Industrial Association, Member of BUSINESSEUROPE
Brussels, February 20th 2008 European Parliament