The Government’s recent decision to modify the Emergency Ordinance 109 from 2011 on corporate governance represents an important step in improving the corporate governance of state owned enterprises, according to local fund Fondul Proprietatea’s manager.

The changes clarify the procedures for the selection and appointment of professional managers in state owned enterprises.

“This is a noteworthy achievement for the current Government, which has made its priority to improve the corporate governance legislation and followed it up with much determination since the beginning of the year,” said Fondul Proprietatea’s manager Greg Konieczny, who is also an Executive Vice President of Franklin Templeton Emerging Markets Group.

Fondul Proprietatea, the biggest investment fund in Romania, owns minority stakes in many state owned companies.

“Fondul Proprietatea considers that the Government’s focus should be now placed on the correct implementation of the amended legislation, which should be done in the spirit of the law and intended to increase the transparency, efficiency and performance of SOEs,” Konieczny added.

editor@romania-insider.com