The State’s Role as Owner of Enterprises: Mandatory Rules of Corporate Governance in Romania

Abstract

The role of state-owned enterprises in the post-socialist countries, after a complicated and painful historical experience is a central issue, because state-owned enterprises still represent and will represent a relevant sector of the economy in the new capitalist context. In 2011, Romania has adopted a hard law of corporate governance, based at least partially on the OECD Guidelines. This is the Emergency Ordinance 109/2011, which created the Romanian regulatory corporate governance of state owned enterprises. The Emergency Ordinance is a great step in the good direction but its implementation is still partial. The corporate government system created by the Ordinance seems clear and well-functioning enough to lead in time, if applied correctly, to a reasonable depoliticization, professionalization and also to the stability of boards, essential to a proper management of state-owned enterprises.