Corporate Governance Accountability and Transparency: A Guide for State Ownership

Using this Guide will facilitate the practical implementation of the OECD Guidelines on Corporate Governance of State-Owned Enterprises in the areas of transparency and accountability. It provides viable policy options and a step-by-step road map on how to address typical difficulties, risks and hurdles that may be encountered. It also provides concrete examples of good practices that can serve as a reference and inspiration. The Guide will help governments, their ownership entities and other stakeholders to evaluate existing practices and support reforms. In most countries, improving transparency and accountability in state-owned enterprises entails a number of complex challenges. Addressing these, with the help of this Guide , is an important step in the process of establishing well-governed and economically sound state-owned enterprises Table of Content : Chapter 1. Setting Objectives -Overview -Developing an ownership policy -Setting specific targets for the ownership entity -Defining and reviewing SOE mandates -Identifying, costing, and funding public services and other special obligations -Defining SOE objectives and specific targets -Developing relevant peformance indicators Chapter 2. Reviewing Performance -Overview -Ongoing monitoring of performance -Annual review of performance -Benchmarking performance Chapter 3. Auditing Performance -Overivew -Internal Audit -External and Independent Audit -State Audit Chapter 4. Reporting on Performance -Overview -Publication by ownership entities of aggregate reports -Development of timely update of websites by the ownership entity -Reporting to Parliament Chapter 5. Ensuring Adequate Disclosure and Transparency at Company Level -Overview -Developing an SOE disclosure and transparency policy -Implementation by SOEs and encouraging good practice -Ensure equitable treatement of shareholders by SOEs -Develop appropriate framework to deal with related-party transactions -Ensure appropriate disclosure on stakeholder relations Summary Annex A. Relevant Guidelines and Corresponding Topics Covered in the Guide Annex B. Participants of the First Meeting of the Global Network on Privatisation and Corporate Governance of SOEs, Paris, March 2008