THE CORPORATE GOVERNANCE OF ROMANIAN STATE-OWNED ENTERPRISES: THE MANDATE CONTRACT

Abstract

Using the O.E.C.D. Guidelines, Romania introduced the corporate governance for state-owned enterprises through the Government Emergency Ordinance no.109/2011, which, with its subsequent amendment provided by the Law no.111/2016, has modernized their management and administration system, ensuring greater transparency and increased control over the operations of public enterprises. One of the main challenges of these entities is given by the mandate issues, that occur with their administration and management. The relationship between the tutelary public authority or the General Assembly of Shareholders and the administrative/management team is very sensitive, considering that it is based on trust and expectations that the designated agents would act in the best and sole interest of the enterprise and they would execute their mission in a manner that is legal, correct and transparent, as well as efficient and profitable. In our study, we shall analyse the content and of the mandate agreement on which the relationship between the public enterprise and its administration/management agents is based, with its mandatory clauses, provided by the incidental regulations from Romanian legislation.

Keywords

• state owned enterpreses;
• corporate governance;