National Stock Exchange Of Lithuania: The Corporate Governance Code For Lithuanian Listed Companies Adopted

In pursue to improve corporate governance and spread the best-practice standards for good corporate governance among the NSEL listed companies, the NSEL Management Board approved the Corporate Governance Code for Lithuanian Listed Companies (The Code). The NSEL listed companies are encouraged to get acquainted with the standards, which are based on the analysis of good corporate governance practice, and gradually start to apply those principles and standards in practice. A detailed implementation procedure of the Code will be developed during this year.

The Code includes recommendations for the best corporate governance practices. By implementing the principles of the Code in practice, the companies can easier attract foreign and local investors, strengthen their confidence in the company as well as increase the company’s competitiveness. The Code covers protection of shareholders’ interests, adequate balance and distribution of functions between corporate bodies, disclosure of corporate information.

While drafting the Code, specific consideration was given to similar codes, standards and principles adopted by other states and international organisations as well as opinions of the Lithuanian law firms and issuers. Guiding ideas of various codes have been reflected in the Principles of Corporate Governance adopted by the Organisation for Economic Co-operation and Development (OECD). According to the data of the European Commission, about 40 codes relevant to the European Union were adopted.

The Corporate Governance Code for Lithuanian Listed Companies can be found at http://www.nse.lt/nvpb/bendrainf/bvk/Corporate_governance_code.doc