Adopting the new Corporate Governance Code: important step to strengthen confidence in the capital market
In order to improve corporate governance standards and promote best practices in this area, the Croatian Financial Services Supervisory Agency (Hanfa) and the Zagreb Stock Exchange jointly adopted the new Corporate Governance Code. The ceremony of signing the Joint Protocol on the adoption of the new Code took place on 16 December as part of the traditional award ceremony of the Zagreb Stock Exchange.
On that occasion, the President of Hanfa Board Ante Žigman emphasised the importance of this event: “The new Corporate Governance Code represents a significant step forward in aligning the Croatian capital market with international standards. It is the result of years of work and reflects changes in the regulatory framework of the European Union and the 2023 G20 and OECD Principles, especially in the field of sustainability, resilience and socially responsible behaviour, making it a modern tool for improving governance practices.”
The Code, the provisions of which will apply from 1 January 2025, is also aligned with the OECD recommendations for Croatia as part of the process of joining this organisation as a full member. Particular attention is given to improving the management of transactions with related parties, publishing shareholder agreements, holding virtual general meetings, as well as strengthening the independence and transparency of supervisory boards.
The changes also include improvements in regard to inclusive working environment, equality, prevention of discrimination, management of conflicts of interest and responsible business conduct and risk management policies.
“The implementation of the new Code will bring significant benefits to companies and stakeholders, strengthening confidence in the capital market and creating the foundation for long-term sustainability and resilience. Although adaptation requires effort, we are confident that through joint efforts we will be able to achieve the expected results,” said Ante Žigman.
With this Joint Protocol, Hanfa and the Zagreb Stock Exchange express their commitment to the continuous improvement of the corporate governance framework and to encouraging the adoption of best governance practices among issuers on the capital market.
The President of the Management Board of the Zagreb Stock Exchange Ivana Gažić pointed out the following: "In modern business, corporate governance is facing increasing challenges, and the need for clearly defined principles is becoming more and more pronounced. We are pleased that with this new version of the Code, together with the regulator, listed companies, investors and all other stakeholders and interested parties, we will continue to work on promoting the quality of corporate governance in order to increase the value of companies, the entire market and ultimately the economy as a whole."
This step is an important signal to investors and all market stakeholders that Croatia is continuously working to improve governance practices and strengthen confidence in the capital market. The document also reflects the joint efforts of the two institutions to ensure the stability and reliability of the financial system in the Republic of Croatia.
The new Corporate Governance Code is available here.