PROMOTION OF THE ALBANIAN MANUAL OF CORPORATE GOVERNANCE
Tuesday, 5 January 2010
PROMOTION OF THE ALBANIAN MANUAL OF CORPORATE GOVERNANCE
As part of the Program on Corporate Governance in Eastern Europe implemented by IFC, part of the World Bank Group, and funded by the Swiss Government through the Swiss State Secretariat for Economic Relations (SECO), the Albanian Manual of Corporate Governance was promoted.
The manual was introduced during the Business Forum "On the Governance of the Stock Companies in Albania" organized by IFC in cooperation with Tirana Stock Exchange, and sets the stage reference in the field of corporate governance in Albania.
The manual is a referent guide for businesses in Albania, for their good corporate governance. Good governance will mean recognition, observance and enforcement of laws and a culture of high society, governance and management. Principles of good governance are key elements of their responsibility, integrity, confidentiality, transparency and openness of information. Given the great importance and influence that stock companies have in Albania, the above mentioned are the principles on which a company should be based on in order to be as efficient in the market. Good governance of joint stock companies reinforces the security, integrity and market efficiency, enabling growth and financial stability of the country, making Albania a country increasingly attractive to investors.
Furthermore, manual will help joint stock companies paying particular attention to capital market in Albania, which may offer the latter with new ways of investment. Activating capital market will make businesses understand the benefits that bring this market, will bring increased access to funding, and increased performance and transparency of the companies operating in the capital market.
Finally, manual will help the shareholders for their decision making, in relation to ownership in shares and how the securities can be used in an organized market (Stock Exchange) to be traded. It will also guide the boards and senior management of companies to be visionary in management strategies and policies, and to bear responsibility in front of shareholders and interest groups. Above all manual will help in increasing the awareness of shareholders and management toward high transparency and information providing.
THE ALBANIAN ASSEMBLY APPROVED THE PROJECT LAW "ON CORPORATE AND MUNICIPAL BONDS”
The Albanian Assembly, on 15 October 2009, approved during a plenary session, the project law "On corporate and municipal bonds”. The present law applies to bond loans issued by:
a. joint-stock companies having their registered seat in the Republic of Albania, and
b. local government.
The scope of this law is the development of the legal framework, improvement of the capital market and the protection of the investors. The law on bonds was drafted as a consequence of the changes occurred inside the Albanian legislation regarding the public financial and commercial law, especially in connection with the newly adopted laws “On Securities” and “On Commercial undertakings and entrepreneurs”, by achieving in this way the harmonious incorporation of the law on bonds with the aforementioned new legislation.
THE ALBANIAN ASSEMBLY APPROVED THE PROJECT LAW “ON
VOLUNTARY PENSION FUNDS” AND "FOR COLLECTIVE INVESTMENT UNDERTAKINGS"
The Assembly of Albania, adopted in a plenary session the Law "For the voluntary pension funds" and Law "On collective investment undertakings.These two laws are expected to be decreed by the President of the Republic of Albania.I. Law no. 10 197, dated 10.12.2009 "For the voluntary pension funds" was drafted in order to improve the existing system of voluntary pensions in Albania with the expected impacts, ineasing in the longer term social costs and stimulate citizens to save privately and voluntarily to increase their pensions; increase the level of saving and population growth long-term investment in the country.This law contains several innovations, and is designed in accordance with the directives / regulations relevant to the European Union and the OECD guidelines [3] – IOPS for the administration of voluntary supplementary pension funds.
The Assembly of Albania, adopted in a plenary session the Law "For the voluntary pension funds" and Law "On collective investment undertakings.These two laws are expected to be decreed by the President of the Republic of Albania.I. Law no. 10 197, dated 10.12.2009 "For the voluntary pension funds" was drafted in order to improve the existing system of voluntary pensions in Albania with the expected impacts, ineasing in the longer term social costs and stimulate citizens to save privately and voluntarily to increase their pensions; increase the level of saving and population growth long-term investment in the country.This law contains several innovations, and is designed in accordance with the directives / regulations relevant to the European Union and the OECD guidelines [3] – IOPS for the administration of voluntary supplementary pension funds.
II. Law no. 10 198, dated 10.12.2009 "On Collective Investment Enterprise" is a serious effort to address and regulate the massive investment of savings in the economy through collective investment schemes in the portfolios of securities. The purpose of this law is meeting the legal framework in the financial sector, focusing on market of securities, in accordance with contemporary standards, a necessity that responds to current developments in the country. The bill aims to create a suitable environment and regulate to promote the development of capital markets. The implementation of this law will create exactly the right space for development and increase of the market of securities.
The law is a clear expression of will and commitment of the Republic of Albania for its approximation of laws with those of the European Union. For this reason some special articles are devoted to the companies based in a EU country, which want to establish a branch in the Republic of Albania, offering foreign companies equal rights and obligations with other local companies.