BICG

News


Guidance and Principles for Unlisted Companies in Latvian and Lithuanian

Guidance and Principles for Unlisted Companies in Latvian and Lithuanian
As unlisted companies make a major contribution to Baltic economic growth and employment,  today the Baltic Institute of Corporate Governance (BICG) has launched the Latvian and Lithuanian language editions of the first ever Corporate Governance Guidance and Principles for Unlisted Companies in the Baltics. Good corporate governance is highly important for unlisted companies. And it is not concerned just with the relations...

As unlisted companies make a major contribution to Baltic economic growth and employment,  today the Baltic Institute of Corporate Governance (BICG) has launched the Latvian and Lithuanian language editions of the first ever Corporate Governance Guidance and Principles for Unlisted Companies in the Baltics.

Good corporate governance is highly important for unlisted companies. And it is not concerned just with the relations between a company’s board of directors and shareholders, but it is also about establishing processes and attitudes that adds value to the business, help build reputation and ensure its long-term continuity and success.

Corporate Governance Guidance and Principles for Unlisted Companies in the Baltics were first published in 2011, in English.

Corporate Governance Guidance and Principles for Unlisted Companies in the Baltics in 2011, LV

Corporate Governance Guidance and Principles for Unlisted Companies in the Baltics in 2011, LT

 

 

Show more

Play to Win, BICG summer event 2012

Play to Win, BICG summer event 2012
The event was was organized with the support of Swedbank and Nasdaq OMX Vilnius, and attended by over 100 BICG members and graduates. It focused on the theme Play to win, with key note speakers being Bob Greifeld, Chief Executive Officer of the NASDAQ OMX Group (NASDAQ: NDAQ), the world's largest exchange company, and Anders Eldrup a Danish business leader...

The event was was organized with the support of Swedbank and Nasdaq OMX Vilnius, and attended by over 100 BICG members and graduates.

It focused on the theme Play to win, with key note speakers being Bob Greifeld, Chief Executive Officer of the NASDAQ OMX Group (NASDAQ: NDAQ), the world’s largest exchange company, and Anders Eldrup a Danish business leader who for years has been a central figure in Danish politics and business.

Mr. Greifeld was introduced by the BICG honorary member, U.S. Ambassador Anne E. Derse.

At the same time, Arminta Saladžienė, BICG Board member, thanked Ambassador Derse for her strong support to the BICG in the past years, and wished her well on her future assignments after leaving Lithuania.

Show more

BICG launches “Governance of State-Owned Enterprises in the Baltic States”

BICG launches "Governance of State-Owned Enterprises in the Baltic States"
Today Baltic Institute of Corporate Governance (BICG) launches its latest publication titled "Governance of State-Owned Enterprises in the Baltic States". This publication is the latest in a series intended to build a more profound understanding of how governance works in the Baltic States, and to develop suggestions for how to implement world class standards in the Baltic region. This publication...

Today Baltic Institute of Corporate Governance (BICG) launches its latest publication titled “Governance of State-Owned Enterprises in the Baltic States”.

This publication is the latest in a series intended to build a more profound understanding of how governance works in the Baltic States, and to develop suggestions for how to implement world class standards in the Baltic region.

This publication is unique in a number of ways. To the best of our knowledge, it is the most sophisticated attempt ever to rank the governance practices of State-Owned Enterprises (SOEs), and the only one to compare SOEs internationally. In addition, the publication provides a highly comprehensive analysis. It looks at four interlinked aspects of SOE governance: public perceptions; individual SOE rankings; an examination of board structures; and an analysis of the legal and institutional framework. At the same time, the publication is designed to be compact and easy to read.

Some of the interesting points that emerge are:

  • There is considerable public dissatisfaction with SOE governance and SOE performance in the Baltic region. The issue of SOE governance and SOE performance has the potential to become politically inflammatory if a scandal or financial duress should emerge. Governance practices pose both an economic and a political risk.
  • One can clearly identify SOEs that are leaders and SOEs that are not. The leaders are rapidly approaching world-class standards of governance. These SOEs show that modern and professional governance practices are possible in the Baltics. They should serve as models for other SOEs in the region.
  • Unfortunately, many SOEs are still far removed from good practice, much less best practice. The report identifies both areas of strength and areas of weakness where governance practices could improve. All SOEs will benefit from a governance improvement plan and a concerted governance improvement effort. The state itself will likely reap significant benefits in terms of the efficiency and effectiveness of its SOE oversight.
  • Some SOEs have boards that are beginning to approach good practice. These are, however, comparatively rare. Board composition is generally weak, and board structures and practices are, with few exceptions, underdeveloped.
  • Board member nominations processes are not designed to find the best people. Processes are generally informal, not transparent and subject to political influence. Boards do not generally have sufficient independent board members or independence of mind.
  • In some cases financial reporting is comparable to world class practice. However, in most SOEs the control environment is compromised by the absence of a direct reporting relationship between the internal auditor and independent board members or an independent audit committee. Audit committees are either missing, or are constituted only to comply with formal requirements.
  • Civil servant board members are stretched beyond what can be reasonably expected of them, leaving the state’s capacity for oversight dangerously weak. Many boards are fiefdoms of ministries or political parties leaving SOEs vulnerable to political influence.
  • The legal and institutional framework in all countries may need some reform. Specific areas are identified. However, the main focus needs to be on better implementation.
  • Countries are taking action. Information on possible directions for improvement is provided.

Press release

Governance of State-Owned Enterprises in the Baltic States

For additional information:

Kristian Kaas Mortensen, President
Baltic Institute of Corporate Governance
km@corporategovernance.lt
+370 611 133 44

Show more

Konferencija “Efektyvus savivaldybių įmonių valdymas”

Konferencija "Efektyvus savivaldybių įmonių valdymas"
2012 m. gegužės 3 d. Klaipėdos universitetas, Aula Magna auditorija, Herkaus Manto g. 84, Klaipėda PROGRAMA: 09:00-09:05 Klaipėdos miesto mero Vytauto Grubliausko sveikinimo žodis I dalis. Efektyvios savivaldybių įmonės - pasitikėjimo savivalda garantas 09:10-09:25 „Valstybės valdomų įmonių reforma". Pranešėjas A. Audickas, LR ūkio viceministras 09:30-09:55 „Danijos patirtis pertvarkant savivaldybių įmonių valdymą". Pranešėjas T. Nohr, Danijos savivaldybių komunalinių bendrovių asociacija 10:00-10:15...

2012 m. gegužės 3 d.

Klaipėdos universitetas, Aula Magna auditorija, Herkaus Manto g. 84, Klaipėda

PROGRAMA:
09:00-09:05 Klaipėdos miesto mero Vytauto Grubliausko sveikinimo žodis

I dalis. Efektyvios savivaldybių įmonės – pasitikėjimo savivalda garantas

09:10-09:25 „Valstybės valdomų įmonių reforma”. Pranešėjas A. Audickas, LR ūkio viceministras
09:30-09:55 „Danijos patirtis pertvarkant savivaldybių įmonių valdymą”. Pranešėjas T. Nohr, Danijos savivaldybių komunalinių bendrovių asociacija
10:00-10:15 „Valstybinių ir savivaldybės įmonių valdymo gairės ir metodika”. Pranešėja A. Saladžienė, Baltijos bendrovių valdymo institutas/NASDAQ OMX
10:20-10:35 „Veiklos planavimo ir atskaitomybės praktika Klaipėdos miesto savivaldybės įmonėse”. Pranešėja A. Velykienė, Klaipėdos miesto savivaldybės administracija
10:35-11:00 Kavos pertraukėlė

II dalis. Savivaldybės įmonių valdymo tobulinimo priemonės ir praktika

11:00-11:15 „Valstybės valdomų įmonių strateginis planavimas ir veiklos efektyvumo didinimas”. Pranešėja L. Grabauskienė, LR ūkio ministerija
11:20-11:35 „Apskaitos pagalba profesionaliai vadybai savivaldybės ir valstybės įmonėse”. Pranešėja D. Pranckenienė, Lietuvos buhalterių ir auditorių asociacija
11:40-11:55 „Valstybinių įmonių pertvarka – pokyčiai AB „Klaipėdos naftoje”. Pranešėjas R. Masiulis, AB „Klaipėdos nafta”
12:00-12:15 „AB „Klaipėdos energija” patirtis tobulinant šildymo tiekimo įmonės veiklą”. Pranešėjas B. Petrauskas, AB „Klaipėdos energija”
12:20-13:00 Diskusija

Konferencijos organizatorius: Klaipėdos miesto savivaldybės administracija
Partneriai: LR Ūkio ministerija, BICG
Registracija: simonas.gentvilas@klaipeda.lt arba (8 46) 39 61 98

Programa

Show more

President Dalia Grybauskaitė Keynotes

President Dalia Grybauskaitė Keynotes
The BICG's second Annual General Meeting and Conference, held at the Radisson Blu Lithuania in Vilnius, March 27, was attended by almost 100 BICG members. The morning session hosted the second Annual General Meeting, where the new Board and Council of the BICG were elected. The members also elected the Nomination Committee and approved the activity report and financial statement...

The BICG’s second Annual General Meeting and Conference, held at the Radisson Blu Lithuania in Vilnius, March 27, was attended by almost 100 BICG members.

The morning session hosted the second Annual General Meeting, where the new Board and Council of the BICG were elected. The members also elected the Nomination Committee and approved the activity report and financial statement of 2011.

The afternoon session was opened by a keynote speech by the President Dalia Grybauskaitė, who stated in her speech: “The Baltic Institute of Corporate Governance is a reliable partner in implementing good management practices in all Lithuania. The results that you achieved in reforming state-owned enterprises are impressive, and provide strong value to the State”.

See the video address

Other speakers at the conference were:

  • H.E. Daniels Pavluts, Minister of Economy of the Republic of Latvia
  • H.E. Rimantas Žylius, Minister of Economy of the Republic of Lithuania
  • Lars G. Nordström, Chairman, Vattenfall
  • Professor Ulf Lindgren

The Conference finished with BICG awarding honorary membership of the institute to Phil Armstrong, Head of the Global Corporate Governance Forum.

The newly elected board of BICG today elected a new Chair of the Board, Ms. Daiga Auziņa-Melalksne.

Ms. Auziņa-Melalksne takes over the post from Arminta Saladžienė, who has chaired BICG since its start in August 2009.

“I am delighted to take over the Chairmanship of the BICG, the Institute is playing a crucial role in developing good governance practices in the Baltic States, and I look forward to contribute to the Institutes growth,” said Ms. Auziņa-Melalksne.

At the Annual General Meeting, BICG President Kristian Kaas Mortensen touched on BICG plans for 2012:

“We will have two international business missions in 2012, one to Copenhagen in April and another to Singapore in October”, said Mr. Mortensen, “We will as well publish a Baltic SOEs ratings project and host a Board member education in May in addition to our local activities.”

Elected by the members to the BICG Corporate Governance Council:

  • Ian Plenderleith
  • Antanas Juozas Zabulis
  • Rolandas Barysas
  • Viktoras Butkus
  • Vitālijs Gavrilovs
  • Juris Binde
  • Uldis Bikis
  • Raino Paron
  • Erkki Raasuke

Elected by the members to the BICG Board:

  • Arminta Saladžienė
  • Linas Dičpetris
  • Carl William Berneheim
  • Paulius Gruodis
  • Daiga Auziņa-Melalksne
  • Andrus Alber
  • Undine Bude
  • Darius Maikštėnas
  • Jerry Wirth

Elected by the members to the BICG Nomination Committee:

  • Tiina Sepa
  • Edita Karpavičienė
  • Aris Zigurs

Press Release

Show more

The Annual General Meeting of the BICG

The Annual General Meeting of the BICG
Following the Article 5.7 of the Statutes of the Association "BALTIC INSTITUTE OF CORPORATE GOVERNACE", legal entity code 3024 41498, registered address Jogailos str. 4, Vilnius, Lithuania, (the "Association") the President of the Association hereby convenes the annual general meeting of members of the Association (the "Meeting"). The main details of the Meeting can be found in the below documents:...

Following the Article 5.7 of the Statutes of the Association “BALTIC INSTITUTE OF CORPORATE GOVERNACE”, legal entity code 3024 41498, registered address Jogailos str. 4, Vilnius, Lithuania, (the “Association”) the President of the Association hereby convenes the annual general meeting of members of the Association (the “Meeting”).

The main details of the Meeting can be found in the below documents:

Agenda of the AGM, EN

Agenda of the AGM, LT

Annex to agenda. Draft decisions, EN

Annex to agenda. Draft decisions, LT

Voting right transfer agreement, EN

Voting right transfer agreement, LT

BICG Nomination Committee Resolutions

 

Show more

The role of Independent media in Lithuania today

The role of Independent media in Lithuania today
The participants in the roundtable discussion The role of Independent media in Lithuania today, which took place at the Swedish residence on the 6th of February, 2012, represented major Lithuanian media companies, journalists, editors and government institutions. In cooperation with the Baltic Institute of Corporate Governance, ambassador Cecilia Ruthström-Ruin invited Mr. Leif Beck Fallesen, well known Danish media profile, to chair...

The participants in the roundtable discussion The role of Independent media in Lithuania today, which took place at the Swedish residence on the 6th of February, 2012, represented major Lithuanian media companies, journalists, editors and government institutions. In cooperation with the Baltic Institute of Corporate Governance, ambassador Cecilia Ruthström-Ruin invited Mr. Leif Beck Fallesen, well known Danish media profile, to chair the event.

Mr. Leif Beck Fallesen reviewed the Danish media landscape and the current situation with printed media facing an unknown, and possibly dark, future. Online media are indeed growing rapidly, but produce less economic value. 15% return on turnover was the benchmark for most business and should be applied also to media. Generally, online media is gravitating towards comments and opinions rather than factual news reporting. Mr. Fallesen touched the Danish example of state support to newspapers; numerous questions followed on that topic. Indeed the state support schemes were costly and it’s including standards sometimes pose ethical problems, but still the political backing was firm from all the parties.

The participants of the seminar illustrated different opinions on the new income – and honorary – tax regulations in Lithuania and its impact on media publishers. One attendee stressed that this was, from a principle point, correct and fair since it levelled out differences between media and other businesses. On the other side this new regulations made it so costly to engage professionals outside journalism, that it would seriously hamper media possibilities to attract highly profiled analysts and columnists. The removal of VAT breaks for printed media posed a severe threat to some of the publishers, so did the decision by the Lithuanian Post to change tariffs during the daily newspapers subscription terms.

The crisis for printed media in general, and particularly in Lithuania, hard hit by economic downfall in 2008, did not only bring turmoil and destruction to the media landscape. We are now discussing quality and how to get people to pay for that and this is in fact a positive outcome, one participant acknowledged.

One journalist stressed the danger that non-profitable media pose to profoundly market oriented media. The existence of numerous media outlets that are sustaining losses for tens of years does not only obstruct the competition, but it also poignantly illustrates the value some owners see in using media as a colporteur for their own interest. Foreign interests are keen to engage in Lithuanian media, especially with upcoming elections, stressed one participant referring to Russia.

The presence of EU-funds for media can add important income to media outlets, but it also imposes new threats of corruption, since this support should be distributed and administrated. This support can, in addition to above mentioned non-profitable media, pivot the market in favour for non sustainable business models. Open tenders for EU-support can be a solution and was discussed.

The State Media Support Fund was found by most participants as insufficient and inadequately managed. The value of keeping non-competitive, and in terms of circulation minor, papers in the market by using state support has drawbacks.

The role of Scandinavian investors was examined, and one media representative stressed that they should not be mystified, but rather seen as rational and demanding business interests. The responsibility of fostering a sound culture within the media business, lies mainly in the media itself, one attendee stressed. Further on the legal framework for media, the regulatory bodies could be improved and discussed in an apolitical manner. The need for a follow up on the discussions was recognised by the seminar participants. To address the shortcomings identified by the discussion a platform for dialogue is essential, something that was not existing in Vilnius today.

Major items for further discussions could be: *State support for media, *EU-fund distribution reforms, *legal framework / self regulation *Establishment of a structured discussion both between media and government and within media itself.

Mr. Beck Fallesen concluded the meeting by stating that the value of media to whole society has to be recognised by both state and private businesses. Any kind of state support can not substitute sustainable media outlets working on sound models. For Lithuania, being a young nation, media could be seen as a part of the nation building process, and for that role it deserves recognition.

Show more

Lithuanian SOEs continue to adapt international best practice

Lithuanian SOEs continue to adapt international best practice
During November and December of 2011, several Lithuanian energy companies have discussed with their shareholders how to improve the composition of the Board of Directors. Today the Baltic Institute of Corporate Governance (BICG) positively notes that 14 persons have been appointed to the boards of the Lithuanian state-owned energy companies as independent directors. Kristian Kaas Mortensen, President of the BICG,...

During November and December of 2011, several Lithuanian energy companies have discussed with their shareholders how to improve the composition of the Board of Directors.

Today the Baltic Institute of Corporate Governance (BICG) positively notes that 14 persons have been appointed to the boards of the Lithuanian state-owned energy companies as independent directors.

Kristian Kaas Mortensen, President of the BICG, states: „The appointment of 14 independent directors is a strong step towards transparent and accountable companies and will help direct the companies forward”.

Minister of Energy Arvydas Sekmokas says: „We are grateful to the Baltic Institute of Corporate Governance for assisting us in finding these independent board members, we hope this will help the companies setting better strategies for the future”.

A professional Board of Directors is essential for directing the energy companies and holding management to account. Members of the Board of Directors should be professional and competent, and not nominated based upon political considerations.

„While we have not yet reached full international best practice, then this is an important step in the right direction” stressed Mortensen.

Press release

Contact for further details:
Kristian Kaas Mortensen
km@corporategovernance.lt
+370 6111 33 44

Show more
Top