The Macedonian Stock Exchange (MSE) introduced a new corporate government code on October 26, taking another significant step towards the adoption of European standards on local capital markets, the European Bank for Reconstruction and Development (EBRD), which supported the project, said.
The goal of the new corporate governance code is to support the successful development of local companies.
The code was developed jointly with the Securities and Exchange Commission of North Macedonia, with the support from EBRD experts. The technical cooperation project was financed by Luxembourg.
"The code applies to companies with shares listed on the official market of the MSE that meet the criteria set out in the listing rules. These companies will be required to report annually on whether they have followed the practices in the code," the EBRD said in the statement.
As in other European countries with capital markets of a similar size and structure, North Macedonia’s new code applies an approach known as “comply or explain”, which allows companies not to apply a particular standard.
“Effective governance can improve a company’s performance in a number of ways”, according to the code, which cites the skills, diversity and experience of supervisory and management board members, strong operational control systems and policy transparency as examples.
The code also introduces for the first time principles and provisions on corporate sustainability, as well as the environmental and social impact of their operations.
“The new code of corporate governance of the Macedonian Stock Exchange not only replaces the current regulation, but redefines and enlarges the scope of listed companies to which the code is addressed and replicates best international corporate governance practices,” Ivan Steriev, CEO of the MSE, said.
According to him, the code is a strategic milestone for the entire market, as it is a comprehensive roadmap towards good corporate reputations and the sustainable long-term development of companies.
The EBRD regards the development of local capital markets as one of its priorities as they provide a reliable source of funding, contributing to financial resilience and sustainable growth.
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