Corporate Governance Country Assessment : Czech Republic

The Czech securities markets are rapidly evolving under political and commercial pressures. However, shortcomings remain that undercut their role in price discovery, and limit their value as risk diversification, as a source of finance and a mechanism for good corporate governance. Ownership concentration resulting from privatization in the early 1990s was accompanied by opaque deals and price manipulation, and owners often exploited control and acted against the interests of enterprises, creditors and minority shareholders. The policy recommendations may be grouped into three broad categories: legislative reform, institutional strengthening, and voluntary/private initiatives. In 2001, the Czech Republic instituted broad financial regulatory reforms. However, related party transactions, insolvency and more technical issues, such as voting by mail and shareholder meetings, still require more attention. Institutional strengthening is also vital to improve enforcement. The judiciary, Securities Commission, and other institutions that oversee financial market participants should be strengthened. Finally, in the area of voluntary/private initiatives, this report recommends enhanced training opportunities for Czech directors.

Bibliographic Details

Main Author:	World Bank
Format:	Pre-2003 Economic or Sector Report biblioteca
Language:	English en_US
Published:	Washington, DC 2002-07
Subjects:	ACCOUNTING, ACCOUNTING PRINCIPLES, ACCOUNTING STANDARDS, ADVISORY SERVICES, ASSET STRIPPING, ASSETS, AUCTIONS, AUDIT COMMITTEES, AUDITING, AUDITS, BANK ACCOUNTS, BANKRUPTCY, BANKRUPTCY LAW, BANKRUPTCY LAWS, BANKRUPTCY PROCEEDINGS, BANKS, BIDS, BOARD MEMBERS, BOARD OF DIRECTORS, BRANCHES, CAPITAL INCREASES, CAPITAL MARKET, CAPITAL MARKETS, COMMON SHARES, COMPANY, COMPANY LAW, COMPANY REPORTS, CORPORATE FINANCE, CORPORATE GOVERNANCE, COURT PROCEDURES, COURT SYSTEM, CREDITORS, DISCLOSURE, DISCLOSURE REQUIREMENTS, DISPOSITION OF ASSETS, DIVERSIFICATION, DIVIDENDS, EQUITY CAPITAL, EXTERNAL AUDITORS, FAIR PRICE, FINANCIAL MARKET, FINANCIAL REGULATION, FINANCIAL STATEMENTS, FIRMS, FOREIGN BANK, FOREIGN DIRECT INVESTMENT, FOREIGN SUBSIDIARIES, FREE MARKETS, HOLDING COMPANIES, INDEPENDENT VALUATION, INSIDER DEALING, INSIDER TRADING, INSTITUTIONAL FRAMEWORK, INSTITUTIONAL INVESTORS, INSURANCE, INSURANCE COMPANIES, INTERNATIONAL ACCOUNTING STANDARDS, INTERNATIONAL BANK FOR RECONSTRUCTION, INTERNATIONAL STANDARDS, INVESTMENT COMPANIES, INVESTMENT FUND, INVESTMENT FUNDS, JOINT STOCK, JOINT STOCK COMPANIES, JOINT STOCK COMPANY, JOINT-STOCK COMPANY, LABOR LAW, LAWS, LAWYERS, LEGAL COUNSEL, LEGAL FORM, LEGAL PROVISIONS, LEGAL SYSTEM, LEGISLATION, LICENSING, LIMITED LIABILITY, LIMITED LIABILITY COMPANY, LIQUIDATION, MANAGEMENT BOARD, MERGERS, MINORITY SHAREHOLDER, MINORITY SHAREHOLDERS, MUTUAL FUNDS, NET REVENUES, NUMBER OF SHARES, OWNERSHIP CONCENTRATION, PENSION FUNDS, PORTFOLIO, PORTFOLIO INVESTMENT, PREFERENTIAL TREATMENT, PRIVATE SECTOR, PRIVATIZATION, PRIVATIZATION OF STATE, PRIVATIZATION PROGRAM, PRIVATIZATION RESTRUCTURING, PUBLIC COMPANIES, PUBLIC INTEREST, PUBLIC OFFERING, RATING AGENCIES, REGULATORY FRAMEWORK, REGULATORY OVERSIGHT, REGULATORY PROVISIONS, REGULATORY REFORMS, REGULATORY RESTRICTIONS, REORGANIZATION, RISK FACTORS, RISK MANAGEMENT, SANCTION, SANCTIONS, SHARE CAPITAL, SHARE OWNERSHIP, SHARE PRICE, SHAREHOLDER MEETING, SHAREHOLDER MEETINGS, SHAREHOLDER PROTECTION, SHAREHOLDING, SPECULATION, STAKEHOLDERS, STATEMENT, STATEMENTS, STOCK EXCHANGE, TAX COMPLIANCE, TOTAL MARKET CAPITALIZATION, TRADERS, TRANSITION ECONOMIES, TRANSPARENCY, UNLISTED COMPANIES, VOTING SHARES, VOUCHER PRIVATIZATION,
Online Access:	http://documents.worldbank.org/curated/en/2002/07/6556029/czech-republic-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/14529
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