Riga Stock Exchange to introduce Corporate Governance principles with the new year

02.01.2006 RIG

Riga Stock Exchange will introduce Corporate Governance principles starting with January 1, 2006. The principles bear the feature of recommendations. By adhering to the principles, a company will demonstrate that it cares about the rights of its shareholders. Corporate Governance principles and recommendations for their implementation have been drafted by the Riga Stock Exchange in collaboration with market experts, Financial and Capital Market Commission and the companies themselves.

The experience in the recent years worldwide has demonstrated the close link between corporate governance and value to the shareholders. Most of the European countries, including Lithuania and Estonia, are following the EU recommendations and are introducing Corporate Governance principles and guidelines.

Daiga Auziņa Melalksne, Chairman of Management Board, Riga Stock Exchange, explains: “The purpose of the recommendations is increase the awareness of the investors how the management is running the company, thus making the company a more attractive investment target”.

The companies, while applying the recommendations, need by to guided by the “comply or explain” principle. The companies will inform the market about implementation of the principles by attaching a special report to the Annual Report. Thus, the Riga Stock Exchange listed Main and I-list companies will provide the first reports in 2007, together with the 2006 Annual Reports.

The introduction of Corporate Government principles is expected to improve the management quality of the listed companies and enhance the overall level of business ethics in Latvia. It will also increase the awareness on good corporate governance as an important element in the company business performance. The Riga Stock Exchange encourages also any non-listed company to follow the recommendations.

For more information, please contact:
Inese Purgaile, Corporate Communications Specialist
OMX / Riga Stock Exchange +371 7212431