How to disclose information on implementation of Corporate Governance Code in annual reports: Bank of Russia new recommendations

The form of reporting on compliance with the principles of the Code recommended by the regulator includes criteria that will allow investors and shareholders to assess how PJSCs are implementing the provisions of the Code in practice. In particular, the updated version changes the criteria for evaluating such principles as conflict of interest management and the formation of the board of directors with succession planning included, risk management, organisation of internal audit and others. The recommendations contain specific examples which can help PJSCs in compiling reports.

The document was updated on the basis of established corporate practices and proposals from companies and the expert community. According to the Bank of Russia’s annual monitoring, companies whose shares are admitted to on-exchange trading have made significant progress in implementing the recommendations of the Code. The disclosure of comprehensive information is a key factor taken into account by investors when making investment decisions, which has a positive impact on companies’ investment attractiveness.