Outcomes of first Bank of Russia consultative report discussion published
Market participants delivered their remarks to the document that sets forth the Bank of Russia’s proposals and initiatives regarding the improvement of corporate governance in public joint-stock companies. The regulator intends to use all the suggestions received during the public consultation to refine regulation of corporate relations.
The document was drafted by the Financial Market Access Department and published on the megaregulator’s website on 23 December 2015. Since then, the Bank of Russia has received opinion letters from both individual market participants and industry associations. Besides, consultations with concerned representatives of professional interests were held for market participants to deliver additional points to support certain approach.
Most opinion letters favour the proposal to make the board of directors (supervisory board) of the public company responsible for approving the annual report and the annual accounting (financial) statements of the public company, as well as its internal documents other than documents regulating the board’s operations. The abolition of the requirement to obligatory appoint an auditing commission (auditor) and the introduction of the legislative requirement to establish an audit committee within the board of directors (supervisory board) met no objections. The proposals to introduce the notions of reasonable and good actions (reasonable inaction) of governing bodies were welcomed. Many respondents seconded the proposal to insure liability of the company’s board members at the company’s expense in their opinion letters. Most opinion letters welcome the reduction of information subject to disclosure in quarterly reports and the retaining of the requirement to disclose the issuer’s interim accounting (financial) statements. The proposal to establish a closed list of information and documents accessible to the shareholders of the public joint-stock company also received support.
Discussion participants believe that public consultations have turned out to be a useful and timely way of the megaregulator’s communication with professional interests.
