Taking into account the questionable practices and results of appointing the new CEO and other Management Board members at the Latvian State Forests (LSF), Baltic Institute of Corporate Governance (BICG) has decided to expel the company as a corporate member.
The respective decision was made by the BICG Board on Thursday.
Two individual members of the BICG, who are serving on the company’s Supervisory Board and held decision-making positions in the process, were also expelled.
Having participated in the Nomination Committee established by the Supervisory Board of LSF for the selection of the new CEO and the rest of the Management Board, BICG has already publicly raised questions if an appropriate process was conducted.
Among issues related to the appointment and noted by the BICG Board were whether a selected candidate is complying with crucial requirements for the position.
Given concerns already publicly expressed about the process, Prime Minister of Latvia has tasked the Cross-Sectoral Coordination Centre to assess the practices used in the nomination processes, including a selection of new management at LSF.
At the same time, BICG is inviting to start broader public consultations for improving the nomination process of Management and Supervisory Board members in the Baltic state-controlled companies, including the possibility for independent members to have collective veto rights as well as legal rights to publicly comment on the selection process, updating the approach to defining qualification requirements for candidates, competence and role of headhunters, etc.
All members of the BICG are subject to the Code of Ethics, which calls for integrity, transparency and accountability.
Vice President Latvia
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