Proceedings

• 32% of the companies (21 out of 65) have no mentioning about corporate
governance system or rules on their websites or in their reports;
• A weakness for 35% of the listed companies on BSE (23 out of 65) is the fact
that they are managed under a monist system (which reunites in a single
Board both executive and non-executive directors), without the position of
President to be separated from that of CEO.
The percentage of the companies that don’t publish any information about corporate
governance (32%) poses a question mark on the assurance of transparency, one of the
base principles of corporate governance, according to Cadbury Code.
In conclusion, the same as political power, economic power must be limited by
separating the executive directors (managers) of non-executive directors, and by
dispersing ownership. Any shareholder has the tendency to abuse his power of
control, and lack of separation of the two categories of directors will lead undoubtedly
to a concern for personal interest, let alone the interests of the company.
5. A DIFFERENT VIEW ON CORPORATE GOVERNANCE PRINCIPLES.
DO THE RAPID ECONOMIC GROWTH
AND THE INDUSTRIALIZATION PROCESS MATTER?
Another way of approach the corporate governance principles is through the personal
involvement of states, the concerns for improving these principles. This may be
reflected by the number of codes issued, but also by their topicality. According to a
date analysis of the world’s codes on corporate governance, the Great Britain has
issued the most codes (31), the last one being issued on 2010, so it has further
concerns on this line. The most recent code was issued by Egypt (February 13, 2011).
Components of the world’s economy, emerging economies are characterized by the
fact that they belong to nations whose social and business activity is in a rapid process
of growth and industrialization. One argument for this assertion is the fact that 28
emerging market economies were recorded in 2006 according to classifications, and
their number reached to be over 40 in 2010. Considered to be in the process of
transition between developing economies status and status of developed economies
and wanting to accede as soon as possible to the latter status, emerging economies
have openly adopted codes of corporate governance, in order to facilitate the conquest
of new market segments (transparency - the dissemination and disclosure, honest
behavior - valence which shows integrity and accountability in all undertaken
activities -translated in providing information that is relevant for decision making).
However, these codes are the way through they guide their behavior, designed to
serve non-traditionalist customer, open for new products and services, for innovation
and investment in technology. The situation of emerging economies that have adopted
codes of corporate governance is presented in Table no. 2.
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