In order to update the corporate governance recommendations in accordance with modern requirements, in the period from 2018 to 2020, an Advisory Board for the development of a new Corporate Governance Code was established under the auspices of the Ministry of Justice.
The Code has been developed taking into account the requirements set for companies in the regulatory enactments of the Republic of Latvia, as well as the recommendations of the Organisation for Economic Cooperation and Development for corporate governance. The provisions of the Code are based on best international practices in corporate governance. The principles set out in the Code are intended to supplement the procedures specified in regulatory enactments by providing stable but flexible guidelines for the development of the most appropriate corporate governance model for the company.
The principles contained in the Code summarize the best international practices in corporate governance and can be applied to any company that wants to improve its operational efficiency and achieve an increase in value in the long term. The Code consists of 17 principles which support the increase of the company value in the long term, as well as its effective management and transparency of operations. These principles are grouped into 10 sections and cover both conceptual dimensions of corporate governance, such as corporate strategy, internal culture and ethics, and more specific issues of supervisory board election and composition.
Given that corporate governance is an ongoing process during which existing achievements are assessed and further adherence to good practice in the company is promoted, the Code will be periodically reviewed and supplemented accordingly.
For any questions about the Code please contact Corporate Governance consultation council: korporativaparvaldiba@tm.gov.lv
Full Corporate Governance Code is accessible here: