New Corporate Governance Code
Tuesday, October 26, 2021

The development of the new Corporate Governance Code is a mutual project of the Macedonian Stock Exchange (MSE), Securities and Exchange Commission (SEC), with support from experts of the European Bank for Reconstruction and Development (EBRD).

With the introduction of a new corporate governance code, published today, the MSE is taking an additional important step forward with the introduction of European standards in local capital markets. 

The code is addressed to companies whose shares are listed on the official market of the Macedonian Stock Exchange that meet the criteria specified in the listing rules. These companies will be required to report annually whether they have followed the practices in the code. 

As is the case in other European countries with capital markets of a similar size and structure, the Macedonian code applies an approach known as “comply or explain”. This approach allows companies not to apply a particular standard – for example, if it is not suitable because of the company’s size or structure – provided they explain to their shareholders and the market why they have chosen to do so. All other listed companies that do not meet the criteria of the listing rule are encouraged voluntarily to report on how they implement the code.

The goal of the new corporate governance code is to improve management and control over the listed companies, to ensure higher transparency, to improve the manner of communication between the companies and related parties, to implement strong systems that support further grout of the companies. The code also introduces for the first time principles and provisions related to companies’ sustainability as well as the environmental and social impact of their operations.

On this occasion, Mr. Ivan Steriev, the CEO of the Macedonian Stock Exchange said: The new Code of the corporate governance of the Macedonian Stock Exchange, not just replace the current Code, but redefines and enlarges the scope of the listed companies to which the Code is addressed and replicate the best international corporate governance practices. Although the Code is an act adopted by the Macedonian Stock Exchange, it is perceived as a strategic milestone for the entire market. The adoption of the new Code was mutually initiated and carried out by MSE and SEC, with the significant support provided by EBRD and its consultants. The Code is a comprehensive route map towards good corporate reputation and sustainable long-term development of the companies, which will make positive implications not just on the Macedonian capital market, but to the broader community as well.

Ms. Nora Aliti, the President of the SEC said: Efficient, resilient, and fair capital markets are built on a range of foundations. One very important building block is exactly good corporate governance. The new corporate governance code provides a robust framework of good rules and standards that set the expectations and boundaries of listed companies which will result in sufficient disclosure to allow investors to make informed decisions. As a regulator, we are confident that the new corporate governance code has the right balance between encouraging growth and providing for a suitable level of investor protection.

The EBRD’s Head of North Macedonia, Andi Aranitasi emphasized that: "We are delighted to support the MSE and the SEC in the development of the new code of corporate governance. We are very pleased that the code sets robust and modern standards to promote the further development of the capital market in North Macedonia. We would like to thank the MSE and the SEC for their candid and proactive cooperation and the Grand Duchy of Luxembourg for its generous support of this initiative. The EBRD will continue to support the authorities in establishing a reporting and monitoring framework related to the new code and motivating firms to build their governance practices around the code’s provisions."

The Code may  be downloaded on the following link