Publicly listed companies claim their corporate practices remain robust, reporting 77% compliance with the recommendations specified in the Corporate Governance Code. However, the quality of corporate governance at public joint-stock companies is reportedly declining.
This decline is attributed to regulatory easing and sanctions. Companies have faced challenges in appointing independent directors, leading to a reduction in boards where independent directors constitute a third of members. Additionally, many companies failed to disclose information on governance bodies, equity structures, and company secretaries. Several issuers conducted annual general shareholder meetings through absentee voting.
The Bank of Russia has observed that corporate practices often do not align with the approaches companies claim in their reports. “This shows that they adhere to the Code in a formal way and misinform their shareholders and investors,” stated the Bank of Russia. The institution urges companies to responsibly implement recommendations and evaluate their corporate governance frameworks.
Further insights are available in the Review of Corporate Governance Practices at Russian Public Companies for 2023.
